Car Dealer Magazine: Issue 37

Issue 37 | April 2011 | CarDealerMag.co.uk | £3.50

selling the dream

The sheiks, the showroom, the salesmEn p50

Feature

Exclusive

special report

clean team

Google tips

F&i Insight

We get our hands dirty with the car valeters p46

what the future holds for dealers online p10

firms that can help you boost profits p61

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BLACKBALL MEDIA 2A CHURCH ROAD GOSPORT, HANTS PO12 2LB T: (023) 9252 2434 W: CarDealerMag.co.uk EDITORIAL DIRECTOR James Baggott james@blackballmedia.co.uk Twitter: @CarDealerEd STAFF WRITER James Batchelor james.batchelor@blackballmedia.co.uk Twitter: @JRRBatchelor ADVERTISING MANAGER Duncan Chappell duncan@blackballmedia.co.uk Twitter: @CarDealerAds ADVERTISING EXECUTIVE Jade Simmonds jade@blackballmedia.co.uk Twitter: @CarDealerJade

Contributors Graeme Windell, Dean Smith for the strange toy-like pictures, Mike Askew, Mike Jones, Big Mike, Alex Goy and James Litton

ignitiOn.

you know that 15 per WelCOme. DID cent of Americans answer

their mobile phone during sex? It’s true. Well, at least that’s what Google would have us believe. It was just one of many fascinating, and sometimes unusual, facts that came out of a special conference held at the end of February by the web powerhouse.

Pretty much anything Google says about the internet can be treated as gospel. Without them most websites wouldn’t be found and it’s pretty much the default starting block for almost all web searches.

So when we were invited to Google’s headquarters for its inaugural Think Dealer conference we jumped at the chance. Not just because we wanted to see the internet’s inner sanctum, but because we knew that what they would have to say would be vital best practice information for dealers everywhere.

And we were right. As the only publication in the UK invited we’ve tried to cover the conference in as much detail as possible. But, in short, there was one message that rung out from all the speakers – the internet is moving fast, and dealers are being left behind. Find out what you can do about it in our exclusive report on page 10.

SUPeRCAR SHOWROOM THE Google conference was the start of quite an extraordinary day as once I’d finished there I hot-footed it down to Romans International where the team were shooting the cover featue.

Situated on a very busy road out of London, I wouldn’t be surprised if the dealership was cited as the cause of a few crashes! The site’s £7m worth of stock is an unbelievable spectacle – with not one, but two Ferrari Enzos, a Bugatti Veyron (which had just left to be shown off to some Russian billionares), and a Mercedes CLK GTR in the showroom. We were fascinated to find out just what it was like selling these cars on a daily basis.

Our feature starts on page 50. Oh, and I hope you like the smart pictures our snapper Dean Smith has taken. He’s used a new technique called ‘tilt shift’ that’s made the cars look like toys. He’s rather clever. Must be all the Red Bull he drinks…

James Baggott, Editor

thanks to...

Chris Jervis, Linda Baggott, Simon Evans, Tim Naylor, Tim Smith Martin Hill, Tim Heavisides, Richard Hoggart and Don Brough,

subscriptions £24.99 per year (UK) £39 (EU) £49 (rest of the world) You can pay by credit or debit card on our website – visit bit. ly/dealerclub – or send us a cheque to the address above made payable to ‘Blackball Media Ltd’.

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Don’t just take our word for it Motor racing legend

“I often get approached to put my name to products and services but when I was introduced to Safe&Sound I knew this was something that was valuable for the consumer... a car warranty product that goes further and (also) adds value - a product that is good for the car buyer and good for the industry. We all know buying a car is a big decision and this product brings with it peace of mind - removing those niggling doubts about safety, car history, real mileage and even if you're paying a fair price. I am pleased to have my name associated with Safe&Sound; it's a winning product for motorists in the UK."

Don’t say if only...

The WMS Group are launching a new initiative to recognise the ‘best of the best’ in UK used car dealerships.The Safe and Sound programme, based on our exceptional used car warranty product (including wear and tear*), focuses on customer satisfaction and retention by taking away the confusion and complexities for motorists buying a vehicle.

✓ Safety ✓ Mileage ✓ HPI ✓ Warranty ✓ Rescue and Recovery ✓ Independent price ✓ Dealer buy back promise We will also pay all authorised claims within twenty four hours of receipt of correct paperwork.

For the opportunity to be a part of this dealership network please call Eric Stone on 07789 682502.

The WMS Group, Thame House, Thame Road, Haddenham, Bucks HP17 8HU

Call us to be part of it: 0800 197 0321 sales@safeandsoundcars.com www.safeandsoundcars.com

Make your dealership a cut above the rest and gain a competitive advantage.

*Ultimate warranty applies to vehicles up to 6 years and 60,000 miles at the time of purchase that have not exceeded 85,000 miles at the time of claim.

The policy does not cover negligence i.e. insufficient oil or water, overheating or failure to ensure that minimum damage is incurred by taking preventative measures. A support product is available for vehicles that have exceeded 6 years and 60,000 miles at the time of vehicle purchase.

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Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £199 for a £25 annual subscription

We visit the dealer with £7m worth of supercar stock

issue 37 i april 2011

DashBoarD

12

geneVa shOW

the star cars revealed

Feedback

07

Tesco to team up with Carsite?

09

Special report: Google gospel

10

Geneva Motor Show

12

Captiva to capture BMW

14

Great Wall looking for dealers

17

Dealers fight Auto Trader prices

19

Cars of the Future competition

21

Around the World

23

My First Sale

24

Special report: Douglas Stafford 26

38

manual

peugeot 508 tested

43

manual

cayenne diesel tested

‘‘

the problem is the trade does not care enough about websites.

10

46

Cleaning up

Batch gets a real job

Helpdesk with Car Dealer Club

29

Finance

30

Special Report: Warranty launch 32

google on dealers

f

of

inside.

50

COVer stOrY

Bangers4BEN: The Italian Job

35

Big Mike

37

Forecourt Peugeot 508

38

Vauxhall Antara

40

Chevrolet Captiva

41

Range Rover Sport TDV6

42

Porsche Cayenne Diesel

43

Hyundai i10

44

Toyota Verso-S

45

Features Batch gets a real job as a valeter 46 Inside Romans International

50

911 for 2011

57

DSG in Scotland

58

F&I Showcase

61

Data File

a mOnth in a piCture...

This month we looked for others that beat this, but couldn’t justify making this one smaller to fit them in. it’s too good for that. it’s Batch with a bird. A very big bird. Somewhere in Scotland.

We didn’t ask why. Nor should you.

Right Click

71

Auctions

72

Shares

73

SMMT Sales Figures

75

Suppliers Guide with Alex goy

76

Trader Directory with James Litton 78 carDealerMag.co.uk | 05

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WHEN A VEHICLE BREAKS DOWN, DOES YOUR BUSINESS LOOK UP?

Bad news? Not always. Especially if your customers have a quality warranty.

Research shows that customers who are happy with a warranty are more likely to return for repairs, servicing and new purchases. Last year, Car Care Plan spent more than £50 million on parts and labour. That’s business that you could be getting a healthy share of. Why not check us out. Or look us up. Call 0844 573 7591 or visit www.carcareplan.co.uk to discover more opportunities for you.

Car Care Plan Limited is authorised and regulated by the Financial Services Authority.

CarDealerIss37.indd 6 100799 Mechanic & Car_Dec 27.10.10.indd 1

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feedBaCk. your comments via email at james@blackballmedia.co.uk | from our website at carDealerMag.co.uk | and from twitter: follow @carDealered

tesco a hot topic tesco to sell used cars?

link: bit.ly/tescousedcars Haven’t Tesco been down this route before? I remember when I worked at the Ford main dealer in Newbury, Tesco were planning to sell NEW cars – it never happened! Still, it’ll be great news if they sell used cars. Saturday morning, in the queue and all those people complaining they have a problem with their car! Stick to what you know and leave the motor industry alone! steve smith, via carDealermag.co.uk AN interesting development and one which will rightly raise eyebrows across the trade. Years ago, when setting up easyCar, I approached most of the supermarkets for cooperation as they have two of the biggest assets that we needed: 1. A huge customer base, of whom they have the most detailed behavioural databases possible, knowing every aspect of what you buy, your loyalty to brands and products, your susceptibility to special offers, when you buy, how you get there (and almost all of them drive to the location!).

2. The biggest and often under utilised ‘forecourts’ you can imagine, where you can easily park a significant number of additional cars without disrupting business. All are carefully maintained, secure and have great access… not to mention the armies of bored husbands who would rather look at used cars in the parking lot than push the trolley inside.

So they know exactly what you like and they know you are a regular visitor to their stores…

These factors, along with their highly cash generative business model, gives them a pretty strong starting point! This is one story I am keen to keep an eye on and see if it comes to fruition. stuart niblock, via carDealermag.co.uk Tesco selling cars? Very interesting, but as we all know it’s not like selling baked beans. You don’t

tWitter coMMents

tweeting thoughts on our new-look magazine some happy memories of early lexus days. Just look at them now. thanks to @cardealered for the inspiration.

Via @octanefactory it’s genuinely refreshing to read an industryrelated publication (of any genre) which isn’t just comprised of pr puff pieces.

Via @ukmotortalk the new mag is great James, well done!

Via @chriscarsgreen

memories – i was one of the first lexus salesmen in 1990.

Via @neillwatson

congrats on new design for ‘car dealer’ James, bold and innovative, great photography too.

Via @Blackbirdcomms

new-look mag looks fantastic! and, tesco, selling used cars? oooohhh!

Via @Bodyshopmag

@cardealermag nice work on brand refresh!

Just got my copy.

Via @tinagdesouza

enjoying the lexus feature. love the picture of richard rhodes, he seems to be struggling with the smile though. lol Via @jamesbt_uk

love the new style mag!

Via @Quicks_uk

great article about #lexus in the uk by cardealered this month. brings back happy simply pick and check out at the till, saying that they have the money to ‘invest’ or ‘waste’ to see if they can make it work. A little worrying as every sale they make will effect one of us dealers. We’ll just have to wait and see. umesh samani, via carDealermag.co.uk Very interesting news. Tesco has such a strong brand and if the rumours are true and they do indeed have over 100,000 cars to choose from, this

James nice new look to the mag, fantastic content – Job Well done!

Via @WinWinWorldltd will spell trouble.

James Greenaway, via carDealermag.co.uk If Tesco is going to sell mostly ex-Motability cars online, how are they or the customer going to tax the cars? They are all registered as disabled so you need to go to a DVLA office to tax these vehicles.

Jeff sandat, chelmsford saab, via email tesco latest, p9

My conFession

a smashing introduction for customers one saturday when working as a salesman at a large mercedes and chrysler dealership, i was sat at my desk with some customers. the dealership was quiet, and i was taking them through the deal with hope of selling them a car (obviously). the rest of the sales team were outside moving the forecourt around. through the 30-foot high floor-toceiling windows, i could see the boys lining up the stock.

as my customers were fairly timid, they weren’t very forthcoming with questions, i needed to break the ice with them. i was struggling to get a conversation going and a dreaded silence fell over us. as i was sat there trying to find inspiration, i was saved by my colleague. not the usual ‘hi, can i get any of you a coffee?’ but by reversing a dodge avenger straight through the window and into the showroom. smashing the glass at about 20mph,

the noise was like a bomb going off. he skidded to a halt about seven feet behind my customers, they jumped out of their skin and turned around expecting to see flames and debris similar to that of an earthquake. instead, they saw my colleague sat in a glass-drenched car! as cool as terry tibbs, he got out, turned to my customers and said ‘your test drive is ready’. brilliant.

Dc, portsmouth

got a story as good as this one? We want to hear it. every one printed gets free membership to car Dealer club worth £24.99. email yours to james@blackballmedia.co.uk carDealerMag.co.uk | 07

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Why not go 24-7 in 2011?

51% of visits to dealer websites occur outside working hours

A staggering 51% of visits to dealer websites occur outside 9-5 working hours, with peak activity between 7pm and 10pm*.

Using GForces 24-7 Live Chat, Peter Vardy Group wakes up to an average of 15 qualified enquiries every morning and so could you. Enjoy a fruitful 2011 and capture your missed opportunities with GForces 24-7 Live Chat.

GForces works with more of the country’s Top 200 auto dealers than any other rival and has the experience, talent and technological experience to turn your websites into a key sales and lead generating tool.

* Study of 50 Top 200 dealer groups in month of September 2010

0845 658 9290 CarDealerIss37.indd 8

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*.

dashBOard.

Could Tesco partner up with Carsite? exclusive

Our sources believe car supermarket will play key role in Tesco used car launch source has told Car Dealer that Carsite could be about to partner up with Tesco to sell cars. We revealed in last month’s issue that it is believed the supermarket giant is gearing up to launch a used car sales portal.

A source close to the project told us that a website – similar in style to Autoquake – would be used to sell tens of thousands of used cars a year. Carsite.co.uk is very similar to Autoquake so the fact our source believes they are the preferred partner makes a lot of sense.

‘It would be very difficult for Tesco to set up a website that works selling cars out of the box,’ said our source.

‘A partnership with an existing dealer group makes a lot of sense. I’m very certain that Carsite will be that partner. I have it on very good authority that it’s the case. They will provide a white label product for Tesco.

This will allow the supermarket group to get into the market quickly.’

Carsite currently lists more than 2,000 cars on its website, many of which are Motability cars – the source of stock we believe Tesco plans to use.

Carsite is well practised in the art of selling cars online too with an excellent website making buying cars with the click of a mouse simple. They secured a Highly Commended place in the Car Dealer Ewards last year for the use of RAC video reviews of selected cars online.

Initially Carsite was set up to sell cars from fleet to the trade. That was back in 1998, but since then the firm has evolved to

car Dealer poWer

Will tesco partner with used car supermarket carsite for launch? retail cars to consumers.

We contacted Carsite for a comment but so far it has declined to make a statement.

We also contacted Tesco again and it sticks by its original statement that it ‘doesn’t comment on speculation or rumour’.

Our news feature last month was followed up by The Mail on Sunday and the Daily Mirror with countless websites reporting on our piece too.

And since then we’ve also heard rumours from the car finance world that the supermarket has approached a number of brokers.

Editor of Motor Finance magazine Fred Crawley told us: ‘Several lenders have told me that Tesco is eyeing up the car and van finance market. We’ve heard Tesco may be in talks with an HP provider at present with a view to providing HP shortly after launch, and it seems plausible it could provide HP, and potentially a PCP offering, from its own balance sheet later on.’

The fact the Tesco rumours are circulating in the motor finance industry too about the supermarket giant entering the used car sector will only add more fuel to the speculation. got a tip off for us? get in touch with the editor: james@blackballmedia.co.uk

Fill in the survey now!

an incredible number of you have already filled in our cardealerpower.com survey – but we still need more responses. We’re looking to find the best car manufacturer to represent in the uk as well as the best suppliers to do business with. and the only way we can do that is if you log on to our survey and let us know your thoughts. the survey can be found at cardealerpower.com and takes just a few minutes to fill out.

Martin Hill

net Gains

Don’t get fined – make sure your site complies

I

A

o

d

gallery of the sideways happy Jaguar Xkr-s bit.ly/jagxkrs

the survey is totally anonymous – all we ask is that you include your mobile telephone number. that’s so we can inform you if you’ve won a prize. We’ve extended the deadline for your chance to win a pair of tickets to the goodwood moving motor show. We’ve got five pairs to give away for the June 30 event. car dealer power closes on may 28 and we’ll be holding our awards ceremony on July 20 (note the changed date).

would imagine that most of you have been bombarded with information from your finance partners regarding the new Consumer Credit Directive regulations, that came into force on February 1.

You are probably extremely aware of the changes to showroom processes, such as the need to provide adequate explanations of the products. But before you stop reading and move on, let me raise something that many of you probably haven’t been preparing for – the changes in the way these finance products must be advertised and promoted. Especially online.

There are more than 105,000 consumer credit licence holders in the UK, and every one of them must make sure that their advertising of finance products is compliant.

The penalties if you don’t?

Well, these range from a fine to having part or all of your consumer credit licence amended or revoked. Please don’t make the mistake that many dealers often do – to wait and see what everyone else is doing, or even worse do nothing at all.

There are numerous changes that need to be made to your online advertising, and we don’t have space here to go into what they all are.

However, the main ones to be aware of are: 1. The concept of the ‘typical APR’ is now gone. This has been replaced with a ‘representative APR’ figure, which is calculated on a different basis.

2. There is a requirement for a dealer to disclose the extent of their independence with regard to finance lenders. In practice, this is extremely difficult for a motor dealer to evidence, as most will have some form of tie to either a manufacturer or finance company.

Make sure you make the declaration.

3. A ‘representative example’ has to be provided wherever monthly payments of any description are mentioned. This is probably the biggest change, and can be fraught with issues for motor dealers.

There is no transition or grace period either. I suggest you take a look at your website to ensure you comply.

My background is in legal and compliance, and I’m happy to help. Email me at martin.hill@codeweavers.net

‘There are numerous changes that need to be made to your online advertising.’

Who is Martin Hill?

martin is commercial director at codeweavers. learn more about how he can help you at codeweavers.net or call 0800 021 0888. carDealerMag.co.uk | 09

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DASHBOARD.

Google gospel Car Dealer was the only media outlet invited to search giant’s inaugural Think Dealer conference. James Baggott reports on why Google thinks dealers are dangerously lagging behind online

C

hange is coming to the motor industry whether you like it or not – but it’s a case of embrace it now or be left behind. The internet and the way consumers access it is changing at such a pace, many in the technology industry are struggling to keep up – let alone dealers trying to sell cars online.

A staggering number of people now access the web from their phones – in fact it’s predicted this will very soon overtake the number of people logging on from desktop computers – while ‘being found’ online is becoming increasingly difficult.

Those were just some of the stark messages coming from Google’s very own automotive experts at the web giant’s inaugural conference for the motor trade, Think Dealer.

Delegates to the conference included marketing directors and managers from all of the UK’s car manufacturers and large advertising agencies who were advised on how their dealers can adapt in this ever changing web world. Car Dealer was the only media present at the event.

‘Today is about changing,’ said Richard Trinder, Google UK automotive industry director. ‘The motor industry is not moving fast enough. It is lagging behind other industries at a time when change is getting faster. This thing called the internet is not going to go away – it’s just going to get faster. It’s a tough market out there and dealers need to understand the speed of change.’

Trinder then listed some shocking facts about car buyers. Some 71 per cent are undecided on brand or model when they start looking for a new car – giving you a real opportunity to sway their decision. Buyers currently spend around 3.2 months looking for their new car and are willing to travel to get it – most said they wouldn’t think twice about traveling more than 30 miles for the right deal. And where do they start that search?

Online. In fact, while 53 per cent will start their search on the web, an incredible eight out of 10 will use the web at some point.

‘The internet influences key decisions throughout the car-buying process,’ explained Trinder. ‘That’s why it’s so important that dealers 10 | CarDealerMag.co.uk

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Insight

Coupons the next big thing In these austere times consumers are desperate to save money and they’re doing it with coupons.

After the search giant’s unsuccessful attempt to buy Groupon, the internet powerhouse is launching its own offering.

In paid-for searches, dealers can add offers underneath their listings for deals on cars, special servicing prices or tyre replacement. In fact anything you can think of. These offers appear under your advert in paid-for search (the yellow results at the top of Google), and consumers can share them online or print them off straightaway.

‘Vouchers are big business,’ explained Rose.

‘They drive footfall and the recession means they’re now here to stay. Offer Ads are in beta at the moment but dealers can dive in and try something new now.’ are there, visible, at the very start. We know that 65 per cent of car buyers find their eventual seller online. And, more startlingly, 22 per cent actually change who they intended to buy from after what they found online.

‘The retail industry is the current leading light in marketing online. The problem is the motor trade does not care enough about dealer websites to capitalise on where consumers are. You wouldn’t not care about how your showroom looked would you, so why do it online?’

Trinder explained that currently there are 1.8bn people online in the world and that figure will balloon to 5bn by 2020. In 2010 4.6bn had access to the web via their mobile phone. By 2020 an incredible 10bn will be able to surf on the go.

‘More people have access to a mobile phone in the world than have access to drinkable water,’ added Trinder. ‘It’s a scary world in some ways, but that proliferation of choice is only going to increase.’

There are a number of simple steps that dealers can take to ensure that they’re in front of buyers

‘‘

The problem is the motor trade does not care enough about dealer websites to capitalise on where consumers are.

4/3/11 16:24:46

Why do dealers need to tune into social media? bit.ly/socialdealers

MOBILE

Mobiles searches booming WEB searches via mobiles will overtake searches on computers by 2013, says Google. The search giant said having your dealership website optimised for mobile phone access is now becoming increasingly important.

Currently just 27 per cent of the UK population has a smartphone – but Google predicts that will rise to 80 per cent within four years!

You only need to look at the number of people carrying a mobile phone to see why mobile web access is rapidly becoming the most popular way to search the internet. In the UK there’s 128 per cent market penetration for mobile phone use, in Italy that’s even higher at 150 per cent.

Google’s mobile industry manager Stephany van Willigenburg said: ‘In the next five years there will be one billion mobile internet users globally and by 2013 we expect there to be more Google searches on mobiles than on PCs.’ She added that mobile searches are increasing for a number of reasons, but mostly because people have them on them all the time.

‘They are private devices,’ she said. ‘People can search for their next car on their phone and other people around them won’t know what they’re looking at.’

She explained the most popular times for consumers to be using their mobiles was during the morning commute, lunchtimes, after work and at weekends – all prime times for car buyers to be researching purchases.

DESIGN

GForces’ top tips

when they start shopping for a new car online – and it doesn’t have to mean shelling out.

Google’s dealer marketing manager Alex Rose explained how updating your dealership’s profile on Google Places can have a dramatic affect – and it won’t cost you a penny.

‘The old adage that satisfied customers tell three people and dissatisfied customers tell nine is less important today,’ explained Rose. ‘Now customers are broadcasting to thousands of people online via social media and review sites. To some, these online reviews are like therapy – but it’s important to remember that it’s not all bad. Some customers are happy to praise a good dealer.’

Rose advises dealers to take ownership of their site on Google Places. This is your web page where contact details of your site are displayed, a picture, and importantly, any reviews about your firm are aggregated from the web.

‘Pages can be modified by dealers,’ says Rose.

‘They need to take ownership of their Places

page, claim it as their own. It doesn’t take long to modify and you can respond to user reviews.

‘Negative reviews need to be responded to and you need to take that conversation offline.

Respond with an apology that the customer has had a bad experience and a telephone number for them to call. It shows other users that you will act.’

Rose advises dealers to set up a Google Alert for their dealership’s name. This will flag up any comments made about your business online so you know it’s there and can respond.

The conference also hinted at what the future holds for dealers on the web. ‘The end game has to be actual car sales online,’ said Trinder. ’Some 45 per cent of web users want to be able to buy cars online. The demand is there – it’s about who offers them that chance. We hear a lot about the fact the Chinese are coming. Will they be the ones that look at a different distribution model for cars in the UK? Selling cars will soon take place online, no doubt about it.’ [CD]

Serial Car Dealer Eward winner GForces was one of only a handful of suppliers invited to talk at the conference. Commercial director Tim Smith gave delegates his top tips for dealers which included giving consumers what they want online, making sure you successfully build a good website but also manage and market it correctly.

Smith pointed to his firm’s work for Peter Vardy and its success at bringing the dealership’s cost per lead down. He said search optimisation work for the dealership group had resulted in natural search results doubling.

‘Peter Vardy has grown to be a very successful business because it has been so successful with search,’ explained Smith. ‘We have managed to bring down their cost per lead dramatically by utilising good search techniques for them.’

Smith also highlighted the importance of dealerships’ speed of response to web enquiries.

‘If you wait 30 minutes to reply to an email as opposed to replying within five minutes, the chance of converting that enquiry drops by 21 times,’ he said. Live Chat is a great way to counter that.

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dashBOard. volKsWagen

Bulli – VW’s special prize

volksWagen has taken the covers off an all-new concept called the ‘bulli’. it takes inspiration from the original 1950s samba bus, but the bulli is also a development of the microbus concept of 2001. it’s powered by a 40 kWh battery, producing 112bhp of power and 260nm, and gives a range of 186 miles. other novel features include a removable ipad!

sKoDa

Czech firm’s new look

it’s all change at skoda! the manufacturer has presented ‘key elements’ of its new corporate design – one of which is a new logo. ‘We are keen to express the new power of our brand not only through our future products, but also in the way we present ourselves,’ said marketing and sales director Jürgen stackmann at geneva.

renault

New Espace on the way

renault has confirmed that the espace replacement has been signed off and the laguna is in its ‘early stages’. the r-space (above) unveiled at geneva, gives some clues as to how next generation mpvs will look, but is ‘not a preview of the new espace’.

Geneva

Fiesta-sized B-MAX will be sliding into dealers very soon F

ord is maxing out its range with a new addition to the family, revealed at the Geneva Motor Show. The B-MAX takes inspiration from its larger C-MAX and S-MAX siblings, both of which have proved to be hits for Ford’s UK dealers.

Though based on the Fiesta platform, the B-MAX sits 11cm higher than the supermini and has a unique body design which eliminates the traditional B-pillar.

With wide opening front doors and twin rear sliding doors, Ford is promising best-in-class cabin access and an interior which offers versatility and high-quality materials.

‘With the B-MAX we set out to create a vehicle that captures the spirit of a smaller S-MAX,’ said Martin Smith, Ford of Europe’s

Seat prepares for a product offensive SEAT will launch four models next year in its biggest product offensive to date. With more than 50 per cent of sales generated by the Ibiza, Seat is heavily reliant on one model and needs to change that to reverse its fortunes.

Seat president James Muir says there are inconsistencies in the brand’s products. ‘Where do Leon and Altea sit in their segments? In the past we have sometimes invented segments but all our new products will be firmly anchored in established areas.’ And he said the IBX concept (pictured) is not ‘a flight of fancy’. Muir is targeting three per cent market share and sales of 60,000 cars in the UK.

Mini people carrier aims to build on the success of its C-MAX and S-MAX brothers executive design director. ‘We wanted to show that a small car could be very spacious and practical inside, while still having the sleek, dynamic appearance that has made the S-MAX so popular.’

And it’s clear to see elements of the daddy MAX in the B-MAX. Slim tail lamps and wraparound rear window all hint at the big brother, but the B-MAX has its own design touches too. The striking front-end is probably the most unique feature, which has a bold new interpretation of Ford’s signature trapezoidal grille.

A state-of-the-art, three-cylinder 1.0-litre Ford EcoBoost petrol engine

Lamborghini reveals 217mph, £200k monster lamborghini has taken the covers off the aventador lp700-4. it has a 691bhp, 6.5-litre v12, is shrouded by an all-carbon fibre monocoque and can get to 60mph in a mind-boggling 2.7secs. We want one.

will feature in the B-MAX, and represents ‘the next addition to the global family of Ford EcoBoost engines’. Direct fuel injection, turbocharging and twin independent variable cam timing allow the diminutive engine to offer low fuel consumption and CO2 emissions.

‘The B-MAX demonstrates Ford’s commitment to providing customers with exciting and innovative vehicles,’ said Stephen Odell, chairman and CEO for Ford of Europe. ‘We believe that the new concepts and technologies it showcases will have a major impact on the small car market.’

Mini Mini recreates appeal of original THIS is BMW’s answer to the complaint that the current Mini is too large – the Rocketman Concept is a mini Mini.

The 10 ft 11in Rocketman has three doors and continues the same principles of large interior space in a small-sized car. BMW has gone to great lengths to ensure the Rocketman’s proportions make it ‘immediately recognisable as a member of the brand family’. So large headlights and a chrome-bordered radiator grille dominate the front end.

BMW, however, is giving no details as to whether the mini Mini will be built.

But if rumours are to be believed it’s highly likely to get the go-ahead.

12 | carDealerMag.co.uk

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Winn Assist Chevy prepares for acciDent manaGement

Exploit the opportunities you may have missed

the X5 swappers

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aking the most of the customers you have through added-value services has long been a successful approach to adding value to your customers and your bottom line.

Here at Winns we like to look at your business as an opportunity to develop revenue lines for all parties concerned while driving customer-added value to the front too.

One example is where you may be retailing vehicles to your customers but not taking the opportunity to ensure that they are taking all the value out of the deal.

Take commercial vehicles as an example, are you looking at the customer’s needs where accidents are concerned?

You have the opportunity to develop your relationship with your CV customers through understanding their needs.

Whether they have one vehicle or a fleet, by engaging with them in regards to the accident management services available they have the opportunity through your introduction to make potential savings on their insurance, vehicle replacement, full accident management, retained value, reduction in end of lease potentially expensive charges and keeping their drivers on the road.

All of these points add value to your customer service and retain loyalty back from your customer base while having a no-cost benefit to all.

By introducing the benefits of the service to your customers you are also protecting not just their loyalty but additional parts sales, hours sold in your bodyshop and future vehicle sales.

Branding can also play a part in the marketing of the product and this again can all be tailored to your requirements. Shouldn’t you be considering your options in this arena?

To explore the potential opportunities that may already exist within your business, but you may not have spotted, call Ian Meachin at Winn Assist Automotive on 07525 986 954 or 0191 276 1000

‘Are you looking at the customer’s needs where accidents are concerned?’

What is Winn Assist?

Winn assist automotive provides branded full accident management for your customers and a host of other services. call 0845 217 2542.

MD says new Captiva is ripe for plucking BMW owners out of their premium SUVs

C

hevrolet MD Mark Terry believes the new Captiva is so good his dealers will be taking many BMW X5s in part exchange.

The new car, which arrives in dealers this May, offers a premium specification for an affordable price – something Terry believes is perfect for these austere times.

At the launch of the new car in Austria, he told Car Dealer that his retail network is desperate to get hold of the new model.

‘Captiva is very significant to our dealers,’ he said. ‘From a volume perspective we doubled our sales in 2010 year on year so we’ve got good momentum there. We

over ordered around 700 Captivas to see us through the winter period while the production shut for the change over for the new model and we are going to run out.

‘We’ve had a lot gravity from BMW X5 customers who’ve lost £25k and want to get into a Captiva. With the austerity around at the moment I think we’ll see a lot more premium customers moving into Captivas.’

He said two harsh winters have also played an important part in increasing demand for 4x4s and said they no longer had the bad connotations of ‘Chelsea tractors’ they used to.

‘The good thing about Chevrolet as a brand is that the badge does not ostersize premium downsizers,’ added Terry. ‘These buyers are attracted by the price and specification and then the product really delivers for them.’ captiva Manual, p41

Vauxhall: Antara didn’t meet our expectations VAUXHALL’S new Antara is a second chance for the maker in the SUV market, says brand manager Simon Prior.

Speaking exclusively to Car Dealer at the launch of the Antara in Scotland, Prior revealed that the previous Antara ‘didn’t meet’ Vauxhall’s expectations and the new car is charged with changing that.

‘Although Antara isn’t the biggest volume selling car we have, it’s still important that we are in the SUV market,’ said Prior. ‘It paves a way for people to recognise Vauxhall can build SUVs and will do so in the future. We have another car coming in 2012 which is going to be a smaller and more youthful Antara.’

It’s a second chance for the brand too.

‘The previous Antara didn’t meet our expectations. It sold around 1,000 per year which is a very small number,’ said Prior.

‘In some ways it kept our foot in the door, and has led us to the new model which we estimate will sell 3,000 units a year – and that will grow over the next two years. The new Antara is a second chance for us.’

On why Chevrolet had a made a success of the Antara’s sister car, the Captiva, Prior replied: ‘We didn’t push it as hard as we could have done. The Captiva sold more because it has a cheap petrol model, and had seven seats. It was Chevrolet’s MPV.’ antara Manual, p40

14 | carDealerMag.co.uk

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As the majority of the costs for this initiative are performance related, it will provide your dealership with a much needed, cost effective, additional resource, leaving your sales team with more time to actually sell cars.

Contact Douglas Stafford today to find out more about how your business can increase its sales opportunities. Call Madelaine on 0800 783 1913 or email: madelainecook@douglasstafford.com

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iM group looking for great Wall dealers Paul Hegarty tells Car Dealer how new brand will launch in the UK

paul hegarty made a success of Daihatsu, now he’s turning his hand to great Wall Chinese products aren’t about cheap and cheerful any more – they can do quality.

Look at the iPhone: That’s built in China and is a stunning piece of engineering.’

The pick-up is expected to be followed up in quarter four by a smart looking city car, currently dubbed the C10. This will again rival competitors on price.

A dealer recruitment drive will soon be underway, added Hegarty, but the focus here will be on finding the ‘right dealers, not just any dealers’.

‘We want to work with dealers,’ he added. ‘We won’t be demanding all sorts from them. We don’t want to be on the same page as dealers – we want to be on the same line! Our goal is to have the happiest dealer network out there. We don’t want to burden our network with costs. But dealers have to be keen and want to please customers.’ read the full great Wall story in the next issue of car Dealer Magazine

Peugeot doesn’t rule out launching hybrid RCZ PEUGEOT has not ruled out putting a hybrid RCZ into production, the French firm’s top brass have revealed.

A hybrid version of the marque’s sports car was shown at the Frankfurt Motor Show in 2009 but details on whether it would make production have been sketchy since. But at the launch of the marque’s Ford Mondeo-rivalling 508, the manufacturer said a hybrid RCZ has still ‘not been ruled out’.

‘It’s not a case of if we can do it but more a case of is there demand for it,’ explained Peugeot technical communications chief Laurent Debure.

This year the manufacturer will launch a Hybrid4 version of the

WarrantY WonDers

Love or loathe learners, they’re all future buyers

w

C

hinese car brand Great Wall is gearing up for launch in the UK with a competitively priced pick up this summer.

Known in Europe as the Steed, importers IM Group hope to be able to offer it through dealers at highly competitive prices. MD Paul Hegarty told Car Dealer he believes customers will be pleasantly surprised with the quality of the Chinese cars.

‘I’ve spoken to a number of people from in the car industry and out and the comments about the cars has been incredible,’ he said. ‘Some people have even compared the quality to German marques.’

Car Dealer has poked and prodded some of the pre-production models at IM Group HQ and can report they’re impressive.

‘The pick-up will be offered with a 2.0litre diesel engine which has been jointly developed with Bosch,’ said Hegarty. ‘It has got more power and torque than many of the competitors’ 2.5-litre engines.’

He also explained Great Wall’s ethos will be high spec models but with competitive entry prices – backed up by excellent service from dealers.

‘We want dealers who represent us to put customer service at the top of their priority list,’ he added. ‘It will also be important for dealers to get across the fact

Heavisides

3008. The drivetrain features a 163bhp 2.0litre diesel engine mated to a 37bhp electric engine offering 200bhp and four-wheel drive. Emissions are sub-100g/km and fuel economy in the high 70s mpg. It’s this set up that would be used in the RCZ. ‘The good thing about the Hybrid4 system is that it is modular so can fit in other models,’ explained a spokesman for the firm. ‘It fits in RCZ but it’s about demand and whether customers want it.’

Debure added: ‘When there is a petrol version that produces 200bhp it’s not known whether buyers would want a hybrid version producing the same.’

508 Manual, p38

e’ve got some new neighbours at the office with the opening of a driving test centre over the road. It’s great to see the range of cars being used – we’ve had everything from the usual Ford Fiesta and Toyota Yaris fare right through to BMWs and open-top roadsters.

It’s been a few years since I learned to drive in a Mini 850, but it’s still enjoyable to see people earning the liberty that a driving licence brings even if that means a few kangaroo starts along the way.

It’s also interesting to think how much that liberty will evolve over the coming years. When I got my licence, petrol was less than a pound a gallon, parking was almost always free and there was no such thing as a speed camera.

With petrol now on its way to £7 a gallon, it’s safe to assume that a lot of the drivers getting their first wheels now will be driving very different types of vehicles in 10 years’ time.

The nature of motoring has always evolved but the one thing that remains consistent is the way in which people still choose to buy their vehicles from dealers.

Sure, the web is a vital window on the process that increases choice more than anything that’s gone before but most drivers still close the deal within the dealership and buy from a professional.

So every one of those new drivers coming out of our local test centre is a future customer – and there are plenty of them.

They’ve all got their licence for the simple reason that they want to drive and they’ll all be looking for a car, or a service, or parts at some point soon (some sooner than others judging by the grating gears from a few).

And where’s the first place they’ll look?

It’s great to know that even with record petrol prices, terrible road conditions and congested commutes there are people queuing up to become motorists. Our market might evolve, but it won’t turn the habits of 30m motorists on their heads any time soon.

‘Our market might evolve, but it won’t turn the habits of 30m motorists on their heads.’

Who is Tim Heavisides?

heavisides is ceo of car care plan, the uk’s leading provider of motor warranty and gap products. carDealerMag.co.uk | 17

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Dealers join forces to fight ‘unfair’ Auto Trader price rises

point oF sale

Catering for the needs of premium car dealers

A

Campaigning dealer sets up website and receives backing from hundreds of traders

H

undreds of dealers have formed a union to battle price rises from classified site Auto Trader they brand as ‘unfair’.

The Motor Traders Advertising Union is the brainchild of one Bath dealer who wants to remain anonymous at this stage. He is fed up with the cost of his advertising increasing and has decided to do something about it.

His campaign website received 4,000 hits in the first two hours it was live and he’s since received emails from nearly 1,000 dealers backing his cause.

‘When I complained about the advertising price rises to my rep he boldly said back “you won’t survive without us” and walked off,’ explained the Bath dealer.

‘Dealers are paying different prices for their adverts all over the country – some pay £4 per car per week, others pay £20. It’s not fair.

‘We want a fair deal for all. Dealers are being squeezed by these price increases and they’ve had enough.’

He said many of the dealers that have

Hoggart

been in touch have said they plan to group together and pull their advertising from Auto Trader at the same time.

‘The problem is dealers are frightened to jump from Auto Trader as they think they won’t get any more business,’ he added. ‘But I don’t think that’s the case.’

The Motor Traders Advertising Union website says it aims to ‘agree a deal with major advertising companies as a collective’.

The campaign spokesman said he had been contacted by dealers both large and small – including some manufacturers – all of whom were willing to join his campaign.

He added that he’d since been contacted

by Auto Trader and planned a meeting to thrash out a solution.

When we spoke to Auto Trader it declined to comment.

Vertu boss: Performance so far has been acceptable VERTU chief executive Robert Forrester has described the firm’s performance so far as ‘acceptable’.

Commenting on the company’s trading update, Forrester told us: ‘To have upgraded our business by improving our profit numbers and increasing our sales outlets, I would describe our performance as acceptable.’

‘But we could do more. We have to do two things over the next year: Improve the businesses we’ve got, and buy more businesses.’

Eight further outlets were acquired in the second half of the year – taking the number from 67 to 75. In contrast, six sites are up for sale with a book value of £6.6m.

Like-for-like profit in aftersales grew, while the numbers of used cars sold by the group rose by 9.6 per cent. However, private new car sales volumes declined in the five months to January, 31, by 6.1 per cent on a like-for-like basis. Preliminary results will be announced in May.

Luxury car sales see profits rise at Pendragon pendragon has reported a rise in pre-tax profits after demand at its stratstone dealerships soared. the dealership sold more than 100,000 new cars in 2010 which equates to five per cent of the uk car market, with sales growing to £3.6bn, and pre-tax profits to december 31 totalling £11m – a rise of £1.3m.

fter 20 years as an independent finance provider we have tried to get ahead of the market and create niche facilities for our dealers to deliver car sales.

Not like us then to be a little slow off the mark, but we initially thought the prestige car market didn’t hold any opportunity for DSG. Seems we got that one wrong. Even in this prolonged industry lull, buyers of prestige marques seem to be flourishing, with most of this sector’s manufacturers reporting healthy increases (see Pendragon story, below left).

So having admitted we didn’t see this one coming we have had to make up for lost time.

Prestige buyers need prestige funding solutions, and more and more are looking at variable rate deals.

With LIBOR rates very low, even with the threat of an imminent rise, daily interest products make expensive cars look very reasonable. The question is how do you present such a product to the customer and demonstrate the benefits?

If you know anything about DSG you will know the answer.

We believe that dealers need the confidence to control every aspect of the sale, there’s no reason why that should have to be compromised just because it needs niche finance to fund the sale.

We have created an enhanced web-based system specifically for prestige dealers at dsgprestige.com. At the core of the offering is a beautifully simple variable rate calculator, giving registered dealers complete control of the quote and clarity for the customer.

Backed up with PCP and HP offers, it demonstrates the flexibility available to this kind of customer.

With a facility like this, there is no reason why any dealer should be losing these finance opportunities to banks or asset lenders brought in by the customer. You can register for access to our system and add some real strength to your point-of-sale offering – simply log on to our website for more information.

Dsg in scotland, p58

‘At the core of the offering is a beautifully simple variable rate calculator, giving registered dealers control.’

Who is Richard Hoggart?

richard is managing director of dsg financial services. for more information on what his firm can do for you call 0844 880 0660 or visit dsgfs.com. carDealerMag.co.uk | 19

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CoMPetition

Your Cars of the future

James Jervis, 10 ‘the raptor scorpio is powered by plasma/ electricity. it also has four miniature jet engines in it. it can do 299mph. price will be £2.2m.’

Has your little one entered to win one of two Halfords bikes we have to give away?

O

ur Cars of the Future competition has had some fantastic entries from across the UK – and here we’ve picked three of our favourites to show you. The competition is open until March 31, so if you’ve got a budding car designer in the house make sure they put pen to paper as they could be riding off with one of two new bikes from Halfords. hOW tO enter 1. Draw a picture of what you think cars will look like in the future 2. Write your name, age, address and notes about what makes your car special on the back 3. Tell us where your mum or dad works 4. Send your entry to Cars of the Future, Car Dealer, 2a Church Road, Gosport, Hants, PO12 2LB by March 31.

You can send in a scanned image of the picture via email to james@blackballmedia.co.uk or post them to Cars of the Future, Blackball Media, 2a Church Road, Gosport, Hants, PO12 2LB.

ONLINE

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Oliver Bateman, six ‘My car can go through water like a submarine and it drives on one back wheel like a wheelie.’

David Hayden, nine ‘the wheels turn flat and rockets turn on. it has tvs built into the ceiling and these can be connected to WiFi or your ps3. it runs on water and has no fumes.’

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around the world

duBai

a recent study by dubai chamber of commerce and industry has said that demand for both luxury and volume cars will remain strong in the united arab emirates despite the development of a world-class public transport infrastructure. it recommends that car dealers should be ready to act in order to meet increased demand. the number of people who own a car in dubai is expected to rise to 57 per cent by 2014.

Dealer news from somewhere other than here

China

toyota will recall 5,202 lexus models in china to fix a malfunctioning gas-pedal problem. the malfunction affects the lexus rX300/350 models manufactured between february 2003 and July 2006, and will be recalled from march 23 due to possible safety hazards. the recall follows others that took place around the world.

usa

a san diego judge has ordered a local car dealer to buy back more than 1,500 cars after the dealer was accused of manipulating contracts after buyers signed the paperwork. the california court of appeal found pearson ford had customers sign a finance contract one day and then later told them they had to sign a new contract. although the terms changed, the dates on the contract did not.

usa

a group of 64 car dealers in seattle who lost their businesses in chrysler’s 2009 bankruptcy have sued the us government, claiming their franchises were closed without adequate compensation. the dealers said the treasury department violated their constitutional rights by failing to compensate them for ‘taking their auto businesses’.

singapOre

a dealer in singapore has been selected by mclaren to sell the mp4-12c. Wearnes automotive has confirmed that it will be launching the two-seater sometime this year. mclaren is confident the car will sell well in singapore – the country has one of the highest concentrations of millionaire households in the world at a staggering 11.4 per cent.

INDEPENDENT DEALERS WIN 4-STAR USED CAR EXPERT AWARDS 3m used car buyers visit UsedCarExpert.co.uk every year.

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roddy mcallister

Peter Vardy’s group sales trainer sold his first car in a petrol station queue!

I

t was three years ago at our old Motherwell site when I sold my first roddy was on car. The dealership used to be next door the ball when to a petrol station, and, as the trainee he managed salesman, I was the one who had to fill all the to sell an astra cars up with fuel for customers. like this one On one particular Saturday it was very busy, while he filled and I was in and out of the petrol station all it up with fuel morning. As I was filling my last car up, a bus pulled up at the petrol station. Out got the driver and he went into the shop to get a drink. a petrol station is not the best place to try to sell As soon as I had finished filling up this twosomeone a car! year-old, five-door Vauxhall Astra, I went into the I thought nothing of it really – the likelihood of shop to pay and, as I was paying, the bus driver him coming back was remote so I forgot about it. started to chat to me. I was wearing my company But, true to his word, he came into the dealership uniform at the time so he was talking to me with his daughter later and asked for the ‘helpful about Vauxhalls and about the Peter Vardy site in young lad’. My manager struggled to think of Motherwell. He also let slip that he was looking who that was because I was still learning to sell for a new car, so I told him about the Astra. cars, but he was eventually shown to me and I gave him all the details; the spec, the price, I showed him the car. He had a test drive and and told him to come in later so he could speak OnTarget_MT_1302:Layout 1 10/2/09 11:18 Page 1 bought it – just like that. to me properly – holding up a queue of people in

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24 | carDealerMag.co.uk

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Leading the pack Finding new customers when sales are thin on the ground isn’t as hard as you might think, reports James Baggott

I

t doesn’t matter who you ask about their thoughts on what will happen to car sales in 2011, the answer is likely to be the same – things are going to be tough.

Official forecasts from the SMMT suggest the market will drop substantially this year meaning fewer customers will be visiting your showrooms.

But what if we told you there was a steady stream of untapped customers out there that every dealership has access to, but very few make use of?

We’re talking, of course, about your past clients. It’s easy to forget about existing owners in the constant quest for new business – but generating those new enquiries via advertising and marketing can be very expensive. That’s why prospecting your past customers, who could be in the market for a new car now, can make so much sense.

‘Sales executives, from our experience, are willing to take incoming calls and pounce on the first person that walks through the door, but if the sales manager asks them to pick up the phone and make some appointments for tomorrow they just don’t do it,’ explained Nigel Cook, chief executive of performance improvement specialists Douglas Stafford.

‘Making appointments is an art in itself. It’s about making that person think now is the right time to change their car, that it’s worth a good price and that it’s a good idea to visit the dealer. We can do that for dealers.’

Douglas Stafford – a firm with 21 years of experience in improving dealerships’ bottom lines – has recently expanded its customer contact centre by launching its Showroom Appointment Initiative, which is tasked with getting old customers back into your dealership.

So how does it work? Well, simply give the firm’s experts a list of your past customers whose cars are a minimum of three or four years old and they’ll set about contacting them. Douglas Stafford will guarantee to generate you an agreed number of appointments every month. Then it’s down to you to sell them a car!

‘The appointments we make are not pressure sales – the customers we send are genuinely interested in a new car,’ explains Cook. ‘The appointments are about quality, not quantity. And we monitor our success on the dealer’s success using our service – at the end of the day we want them to sell more cars.

‘We provide reports on return on investment too

so we can show dealers that they have spent X with us and have sold X number of cars as a result.’

Each dealership gets a project manager and dedicated team to make the calls on their behalf. It’s a completely white label project so customers will never know the calls are made by Douglas Stafford.

‘We always call on behalf of the dealership,’ adds Cook. ‘The customer thinks we are part of the dealership. We don’t want these people turning up telling the salesman that they’ve been pressured into going in and that they don’t really want to be there – that’s no good for the dealer and no good for us. The appointments are only made with people who are interested in exploring the possibility of changing their vehicle.’

Sounds too good to be true, doesn’t it? And the burning question you probably have is why aren’t your staff doing this already?

‘The fact of the matter is salesmen concentrate on selling,’ explains Cook. ‘Making appointments is a different skill altogether. We have expertise to offer dealers that gets results and they can concentrate on constructing the deal.

‘We like to think of ourselves as an extension to their sales team. Dealers get a dedicated project manager that liaises with sales managers to constantly check how things are going. But we don’t do the selling, we leave that to the dealers – our service is about generating the interest.’

Cook set up Douglas Stafford in August 1989. He was a general manager for a large dealer group and needed some mystery shopping carried out, but

‘‘

There’s a steady stream of untapped customers out there that every dealer has access to.

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co-operative group winner in mystery shopping stakes bit.ly/coopchamp

couldn’t find a company to do it. He spotted a gap in the market and set up his company to offer the service to dealers. Douglas Stafford now works with 48 per cent of UK car manufacturers, including Audi, Renault and VW, carrying out mystery shopping – which remains a major part of the business.

But Cook explains it’s not just about the sales generation. ‘After every customer has visited the dealership we follow it up with another call and ask them how it went,’ he says. ‘We go through a survey which we then feed back to the dealership – so if they didn’t buy a car, they know why.

‘It’s not just about lead generation. Even if at the end of the process

the customer didn’t buy a car, the dealer principal still gets excellent customer satisfaction feedback about their dealership and sales staff as an absolute minimum.’

Think of it as an added bonus, says Cook, but he reiterates the firm’s prime goal is to generate you appointments so you can sell more cars.

‘Salesmen, with the best will in the world, will try and talk to past customers occasionally, but if someone walks through the door off they go and try and sell them a car,’ adds Cook.

‘Dealers have hundreds and hundreds of past customers that they just don’t talk to – and if they don’t talk to them they’ll simply go and buy somewhere else. There’s no loyalty. Our service is about building customer relations – contacting the customers so we know when they’re ready to buy.’

So what’s it all going to cost? Well, because the service Douglas Stafford offers is so bespoke you really need to speak to them first. ‘Our service is cost effective because it’s performance related and it is based on both our and our customers’ success,’ explained Cook.

Douglas Stafford is offering free consultations for all dealers and its business development team will be able to give you accurate predictions on how many more cars they can help you sell and what sort of return on investment you can expect. [CD]

Douglas stafford can prospect your old leads for you and turn them into potential buyers, says boss and former car dealer nigel cook (inset)

Details: call Madelaine cook on (023) 9283 0011 or email madelainecook@douglasstafford.com

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helpdesk.

Join Car Dealer Club by visiting CarDealerClub.com Members get free legal advice worth £199 for a £25 annual subscription

ask lucy Car Dealer Club lawyer Lucy Bonham Carter answers dealers’ legal questions. Join for £25 a year to get advice like this when you need it

Q

We sold a customer a late model used car just before Christmas which appears to have developed a few problems within a few days of sale. The seller lives some way away from the dealership so we asked him to get a reputable garage to look over it and come back to us with what was wrong so we could then discuss what to do. The garage diagnosed dual mass flywheel problems but without any resort to us the customer had the car fixed and sent us the bill for more than £1,200 which I have refused to pay as I never agreed to it. Now he is threatening me with court. What do you suggest? mc, newcastle

A

Assuming the fault developed within six months of sale the law presumes the fault to have been there at the time of sale unless you can show that it was not. A dual mass flywheel failure probably falls under the gambit of a pre-existing fault and so they are entitled to some sort of remedy.

However, that remedy should be arranged in agreement with you – with either you fixing it or agreeing reasonable terms on where it was fixed.

In this case it appears you were sympathetic to the problem but the customer took matters into his own hands. In these circumstances a court would probably wish to take a view of whether (a)

Customer doesn’t like car Q. We sold a customer a used car with a semiautomatic gearbox. however, she is not getting on with the car it and wants a full automatic.

What is our legal position?

Qs, leuchars a. she has probably not accepted the car in this time period and if there was any form of written or imagined mis-description in sales literature or by sales staff (describing it as an automatic) then it would not be ‘as described’. however, this is not one for the courts. the best remedy is for you to take the car back and find her a fully automatic replacement instead. think of it as good pr.

cover

can we protect ourselves on dodgy mileage front?

Q. We have a car which clearly has a wrong mileage reading as the odometer says 12,000 whereas the last mot has it at 46,000 miles. the vendor says the dashboard had electrical problems and he had it replaced but the repairer never reset the mileage. can you suggest a disclaimer i should use so i don’t get into trouble selling the vehicle? mtp, malmesbury a. standard motor trade disclaimers ‘the mileage is incorrect and should be disregarded’ or ‘the mileage may not be true and should not be relied on as an indication of the distance the vehicle has travelled’ are not favoured by the oft who prefer a more detailed version. arguably this should also assist you in selling

the car. the oft recommends the use of a prominent and detailed written notice such as: ‘mot test records show this vehicle had a recorded mileage of 46,000 in may 2010, so the currently displayed mileage of 12,000 is incorrect. a new dashboard was fitted at 48,000 miles in July 2010.’

there was a problem and (b) whether the fix was appropriate. If the repairing garage was reputable, and the price reasonable, in the past courts have found in favour of the consumer in these cases – particularly if the repair is not undertaken in a

timely manner. However, in your case we have successfully negotiated with the consumer that you will pay for trade cost for the parts only and they will pick up the bill for labour meaning you have saved yourself just over £850.

a bit of hot bother Q. We have a customer who bought a new car from us on a leased basis. She insured the car online with a major insurer and provided the insurance certificate which we passed on to the leasing company. The car has since suffered an electrical fault and was destroyed by fire.

However, the insurance company are refusing to settle because the customer had failed to declare the car as leased and they state they do not insure leased cars. Any advice please? hD, hastings a. Many insurers state that whether a car is leased or not is a ‘material fact’ and thus that ‘failure to disclose’ the presence of a lease might

lead them to refuse to pay out. My own view is the Ombudsman would not support them in this assertion unless great prominence was given to this point at the time the cover was taken out.

Clearly in this case the insurance policy sold to your customer did not meet her ‘demands and needs’ which is a clear requirement of selling any insurance cover. I have since been through the buying process with the insurer myself and at no time does it mention how the vehicle is to be owned, nor indeed is it mentioned anywhere in their exclusions or on the policy. My feeling then is that your customer has an excellent case of succeeding against them either by using the Ombudsman or by taking them to court.

Who is Lucy Bonham Carter? she is a leading commercial lawyer specialising in automotive. she heads the legal team at autolaw, a multi-disciplinary insurance and legal practice which specialises in providing legal assistance on motor trade-related legal issues and she provides advice to car dealer club members. to get advice like this (worth £199) join car dealer club for just £25 per year. sign up at bit.ly/dealerclub 28 | carDealerMag.co.uk

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Your advert said this car had air con but it hasn’t.

I want you to pay for it to be retro fitted. What are you going to do about it?

The head gasket has gone on the car you sold me after just a year – I want my money back.

What are you going to do about it?

The car you sold me has been clocked. I want compensation for the money I’ve spent on insurance and my money back. What are you going to do about it?

You sold me this car and I’ve found out it’s had an accident repaired. It’s not worth as much as you said it was. What are you going to do about it?

The clutch has gone on my new car. I’ve only had it eight months.

You should pay for the repairs. What are you going to do about it?

PROBLEMS?

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FINANCE. INTEREST

Buyers don’t know rates Fewer than one-in-three borrowers know the interest rate on their loan, according to Autoquake.

The firm asked 1,000 members of the public if they knew the APR on their car finance, bank loan or credit card. More than a third (36 per cent) said they had a vague idea, 28 per cent didn’t know, and five per cent admitted they did not understand what APR meant. Just 31 per cent were confident they knew how much interest they were paying on the money they owed.

Autoquake’s CEO Dermot Halpin said: ‘When money is tight, it pays to keep a close eye on interest rates. We’re surprised that so few car buyers and other borrowers are sure how much they are paying in interest.’

PRESTIGE

More drivers opt for luxury A SURVEY by Oracle finance has found that 2010 saw an increase in buyers funding sports and prestige cars.

Oracle Finance has revealed an increase in the number of prestige and sports cars being financed over the course of 2010 amounting to an increase of 11 per cent in comparison to 2009.

The prestige car finance specialist believes this upturn is a strong indicator that buyers in the luxury car bracket were keen to take advantage of low interest rates and excellent vehicle finance deals without the burden of paying for a vehicle outright. Low depreciation also helped.

Dealer finance the most popular option for buyers

Billions of pounds advanced to motorists but confidence still low

M

ore customers chose to buy a new car using finance through a car dealer than any other finance option in 2010, says the Finance & Leasing Association.

Latest statistics from the trade body for the motor finance industry found that 52.1 per cent of new cars bought last year were done so using dealer motor finance.

Dealer finance grew in popularity during 2010 compared to 2009, when only 45.8 per cent of new cars were bought using finance.

In 2010, half a million people used dealer finance to buy a new car, and motor lenders provided £6.4bn of funds. In the used car market, motor finance helped 635,000 people buy a car, with £5.9bn in advances.

Commenting on December’s motor finance figures, Paul Harrison, head of motor finance, said: ‘Overall, the number of cars financed last year was up by four per cent across all markets as buyers took advantage of the competitive deals.

‘‘

‘However, while dealers had a good year in 2010, they are cautious about the future. We had previously forecast that the VAT rise in January might lead to a rush of sales in December, as consumers tried to beat the rise, as it did ahead of the VAT increase in January 2009.

‘However, this did not happen. Consumer confidence is at its lowest for around two years, and this is reflected in December’s figures, which showed a fall in the total number of new cars bought using dealer finance.’

In 2010 half a million people used dealer finance to buy a new car.

First Response listed in Sunday Times’ best companies to work for FIRST Response Finance has been classed as an ‘outstanding’ company in the Sunday Times Top 100 list, it has been announced.

Out of a possible three stars, the finance firm achieved two, meaning they are firmly placed in the prestigious top 100 list. First Response has been

awarded the accolade in recognition of providing an outstanding working environment for its employees, and treating its workers’ developments as a key priority.

Ben Garside, First Response’s sales and marketing co-ordinator, said: ‘This is the first year we have registered,

and we are using this as a tool to benchmark for the future to make sure our employees are happy.

‘We spend a lot of time and effort on providing our employees with great working environments and great prospects for development. It’s fantastic we are in the list.’

Valuing Service – Valuing You! ervice – Valuing You!

the first choice for First theResponse UK’s smallFinance to medium is the sized first dealer choicemarket. for the UK’s small to medium sized dealer market.

30 | CarDealerMag.co.uk

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!

..in association with

deal finder Latest finance deals on convertibles Mini one UNDER the header ‘Great Mini Offers’, the firm is currently treating the One Clubman, One hatchback and One convertible to a tempting range of offers.

The finance deal on the latter car is great news for buyers on the prowl for a small drop-top this spring. The Mini One Convertible provides the open-air experience for four people in a fashionablyretro and reasonably specified package.

If registered before March 31, buyers will be able to take advantage of a dealer deposit contribution of £758 meaning they have to fork out £2,999. Then 35 monthly payments

of £209 follow at 6.8 per cent APR, with an optional final payment of £8,384 needed if the customer wants to secure the car.

That means the total amount payable by the customer is £19,466.

restriction of 12,000 miles and a charge of 14.9p if the customer exceeds this. At the end of the three-year agreement, an optional final payment of £5,491 secures it, meaning the total price is £19,272.75.

Fiat 500c IN recent years the Fiat 500C has been the new kid on the block in the cheap convertible market, offering a viable alternative to the Mini in the style stakes.

Fiat knows this too. That’s why it’s given two of the 500C models finance deals.

Both the 1.2-litre Pop and Lounge models have offers at the moment – we’re focusing on the better-equipped and more stylish Lounge model.

A £750 contribution from Fiat gets the ball rolling meaning that all the customer has to put down is £1,615.

That’s followed by 36 months at £189

time is moneY

Many happy returns?

A

MaZDa Mx-5 YOU can’t really talk about convertibles without mentioning the Mazda MX-5. In many ways it is THE convertible of the moment. Maybe of all time.

And to make it easier for open-air fans to get into the MX-5, Mazda has an enticing finance deal on at the moment.

It’s on the 1.8-litre SE model which comes keenly equipped with 16-inch alloys, leather steering wheel and gear shift, stability control, and traction control. It requires customers to put down a deposit of £3,031.75 with Mazda throwing in £500.

Then 36 payments of £285 at a low 5.9 per cent APR follow, with an annual

Such

with APR charged at 3.6 per cent. An optional final payment – including a £285 fee – of £5,872 is required in order for the customer to keep the car, bringing the final bill to £14,291.

re you looking for business growth? Do you want to make your business more profitable? Would you like to significantly reduce your monthly cost of sale? Then maybe you should look at putting extra effort into retaining your existing customers, because that is the secret to long-term business growth, profitability and reducing costs.

It is claimed that a one per cent increase in customer retention will return an amazing 17 per cent in overall business growth and that it costs between five to 10 times more to bring a new customer into your business than it does to keep an existing one.

If you already have a high rate of returning customers then that’s great, well done – it shows you’re doing well.

But is that what you ‘think’ or is that what you ‘know’?

There is a big difference between the two. Most of us think our customers will come back, but what do the actual sales tell us? How many of your cars sold last month were bought by existing customers and how many by new ones?

If you don’t know then you may want to find out. You might be expending lots of effort attracting new customers which could be better spent on bringing good customers back to buy again and again.

About a third of the business we write comes from returning customers looking to finance their next car. We are lucky enough to be able to help these customers find dealerships who consistently deliver high customer service standards and share our values on customer care. I’m sure everyone can make that one per cent increase in effort without too much trouble, but all too many won’t and they will continue to lose customers to their competitors every day.

‘About a third of the business we write comes from returning customers.’

Who is Jonathan Such?

such is regional sales manager for first response finance. you can contact him on 07917 781608 or email jons@frfl.co.uk

Tel: 0844 8730819 Tel: 0844 8730819 Web: www.frfl.co.ukWeb: www.frfl.co.uk carDealerMag.co.uk | 31

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dashBOard.

safe & sound It’s not every day something revolutionary comes along in the warranty sector, but WMS might have done just that. James Batchelor investigates

‘‘ B

illing a product as the ultimate used car warranty is a bold claim, you would agree? It’s not only a brave statement but also one that is impossible to make, surely? WMS’ Eric Stone would reply with a firm ‘no’ as the new Safe&Sound warranty from WMS is called just that – ‘the ultimate used car warranty.’

In essence Safe&Sound is a warranty provided by dealers handpicked by WMS who share WMS’ high quality working practices. It’s called Safe&Sound for a reason as it promotes a safe car and a sound investment, and it’s very much the new, definitive warranty that dealers and customers will want – that’s why it’s the definitive used car warranty.

It’s a seven element package which has been put together on how and why customers buy cars, and how they make their decisions.

Safety is the most important concern of any buyer, and that’s why it is the first element in the 60-point safety inspection. This covers all of the elements that are needed for that car to have an MOT. ‘Crucially, the dealers can carry out the inspection report in their own way and in their own workshops, but it will be policed by our underwriters – AmTrust – who will visit the dealer on a six-monthly basis to check that the dealer complies with a all the requirements of the Safe&Sound scheme,’ explains Stone.

The checklist covers all of the basics – is there enough tread on the tyres? Do the headlamps work?

It might be basic but by it being part of one large package the safety check gives the customer added reassurance, and adds power and weight to the car on the part of the dealer. The dealer signs it too, so it just gives the customer the guarantee that this car is SAFE. Hot on the heels of the safety check is the second and third elements of Safe&Sound – the providence and HPI check. It’s your normal affair of checking that the mileage is correct, there is not outstanding finance on the car, the VIN number is the same in the log book as it is on the chassis – the verification of the car. But having both the safety inspection and the providence check in front of the customer on signed papers makes them feel just that little easier about buying the car – they know it’s safe

safe&sound is a warranty provided by dealers handpicked

by Wms.

and it’s what it says it is.

The fourth part of Safe&Sound is the warranty – and this is the element that really makes Safe&Sound the ultimate offering. It’s a six-month affair that covers all mechanical and electrical failures (naturally excluding consumable items), but the ultimate part of the warranty is that it covers wear and tear. ‘This is exceptional in the industry,’ says Stone. ‘It covers vehicles up to six years old and 60,000 miles at the policy’s inception but the customer can still drive that vehicle up to 85,000 miles and we will still pay the claims for wear and

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chevrolet five year promise won’t last forever bit.ly/notforever

pic: matt howell/motorsport magazine

‘i often get approached to put my name to products and services but when i was introduced to safe&sound, i knew this was something that was valuable for the consumer.’ sir stirling moss

tear. Included in this is a six-month rescue and recovery package,’ says Stone – and this is the fifth element of Safe&Sound.

‘This has three elements: home start, roadside assistance, and recovery,’ explains Stone. ‘So now the customer is really building up some safe and sound opportunites with the vehicle – the customer now knows the car is safe to own, the mileage is accurate, it hasn’t been written off, they’ve got a great warranty, and they’ve got recovery too. These are ticking all of the boxes that the customer likes.’

But what is in it for the dealer? Stone replies: ‘Simply, this is a unique scheme. It will only be offered to around 300 dealers as we are trying to build a special network of Safe&Sound dealers.’

Think of it as a club; 300 dealers will be part of the Safe&Sound network ensuring that dealers are working together to supply cars to like-minded customers.

If your maths is up to scratch, you’ll realise that by this point there are only two parts of Safe&Sound left.

Element six is an independent valuation of the car carried out by Used Car Expert. It’s a name that is recognised and trusted by consumers, and in the Safe&Sound scheme it provides an independent valuation of the car the customer is buying. ‘This doesn’t give the feeling to the customer that they’re buying a bargain,’ says Stone. ‘But it does give them the knowledge that they are buying fairly – they are not being ripped off.’ Safe&Sound dealers also receive a Used Car Expert certificate which they can hang on the wall proving they offer customers ‘fair’ prices for their cars in-line with Used Car Expert.

A Safe&Sound certificate signed by Stone will also be given to dealers so they can nail both certificates to their office wall; the eye-catching pieces of paper

not only look good but they give customers the added reassurance that they are not being treated badly by the dealer. Also, it helps in the long term helping to keep customers returning to your door in the future.

And the last element is the dealer promise. ‘It’s a buy-back guarantee,’ explains Stone. ‘It’s what dealers do anyway, but the promise makes sure that the dealer buys back the car if it is offered in a part exchange regardless of age or condition.’

With such a great package available for both dealers and customers, you need great marketing.

Dealers who sign up to scheme will be part of the Safe&Sound name which means they’ll be searchable on the Safe&Sound website, they will have colourful point-of-sale merchandise to show off in their dealerships.

Even Sir Stirling Moss has agreed to lend his voice and face to radio, television and real-estate marketing activities.

‘I often get approached to put my name to products and services but when I was introduced to Safe&Sound, I knew this was something that was valuable for the consumer,’ says Moss. ‘A car warranty product that goes further and adds value – a product that is good for the car buyer and good for the industry. We all know buying a car is a big decision and this product brings with it peace of mind – removing those niggling doubts about safety, car history, real mileage and even if you’re paying a fair price. I am pleased to have my name associated with Safe&Sound; it’s a winning product for motorists in the UK.’ With an endorsement like that, Safe&Sound could be just the package for you.

For details visit safeandsoundcars.com F&i special, p61 carDealerMag.co.uk | 33

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ENGINEERED FOR EXCELLENCE

As the UK’s No.1, Black Horse is more than just a point-of-sale finance company. We have a proven commitment to supporting motor dealers in new and innovative ways, providing bespoke service and tailored products that are second to none:

t Superior online technology, for easier processing, quicker response times and fewer rejections

t Dedicated, highly-skilled sales force with expert knowledge of motor industry requirements

t First-rate point-of-sale material and dealer support t Approved Dealer Programme and Q-points rewards incentive scheme.

With all these resources in place, we’re looking forward to powering your sales in 2011 and beyond.

Black Horse is the retail motor industry’s No.1 supplier, as voted for by the readers of Automotive Management.

Call 02921 386338 for more details or visit

blackhorse.co.uk/motor

Finance available subject to status. Indemnities may be required. Black Horse Limited, St William House, Tresillian Terrace, Cardiff CF10 5BH.

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dashBOard.

read blogs and see videos from last year’s adventure Bangers4BEN.com

fancy visiting ferrari?

This year’s Bangers4BEN adventure will see us visit the home of Ferrari! Only thing is you’ll have to do it in a car costing no more than £500. You up for it?

T

he home of Ferrari. Maranello. A mecca for fans of the prancing horse the world over. Birthplace of the some of the most iconic automobiles ever made, home to some of the rarest and most exclusive motors in existence… and our destination for a bunch of clapped-out bangers this October.

Bangers4BEN is our annual trip to an exotic (ish) location in scrapheap-dodging motors in aid of automotive industry charity BEN. Last year our team of intrepid challengers made it to the playground of the rich and famous, Monaco, in trusty steeds costing no more than £500.

This year the challenge is no different. You need to buy a banger for under £500 which will be sold at the end in an auction in aid of BEN, then turn up at Dover for the drive south to Italy and back.

So the event doesn’t take up too much of your working week, this year we’ve decided to start on a Saturday, so you only lose two days out of the office. The four-day event begins on Saturday, October 8, at Dover and returns home around 5pm on Tuesday, October 11.

We start at Dover on day one and drive 474 miles to Broug-en-Bresse, France. On day two we’ll head across the Alps (or through it, depending on the weather), to Maranello where Ferrari have arranged accommodation at their preferred hotel.

Day three will start with a tour of the Galleria Ferrari – Ferrari’s museum which is home to some vintage cars from the world of F1 as well as models from the marque’s range over the years.

After that we’ll head back to Broug-en-Bresse where we’ll be staying on the final night before making the journey back to Dover on the last day. The whole trip will see us cover a total of 1,701 miles!

On the first day we like participants to turn up in fancy dress. Last year most teams themed their cars – we had a DeLorean, a Nissan Rabbit and us in our Blackbird SR71 Honda – and most of us stayed in our accompanying fancy dress for the entire trip. It’s up to you whether you want to, but we think it’s worth it for the amount of strange European looks you’ll get!

When we get back to Blighty the cars need to be dropped off at BCA’s Blackbushe site where a few days later a charity auction will be held, the cars sold and all the proceeds handed over to BEN. Last year we raised more than £13,000, and the year before that £15k, so we’re hoping this year will be just as successful. Many teams also raised money for BEN through sponsorship. Although not mandatory, it’s a nice way of boosting the final total and every little bit makes a difference.

We’ll be visting the ‘galleria Ferrari’ museum on our trip

Last year’s Bangers4BEN event in 129 words…

We bought a boring honda civic. decided to turn it into a blackbird sr71 spy place. not sure why. Wrapped it matt black. found pilots outfits. arrived at dover to be met by teams equally as mad as us. one had a saab-based delorean, another covered their nissan in fur and gave it rabbit ears. strange. day one: long, wet, cold beer at the end. team chased by les plod for forgetting to pay for fuel. day two: long, got warmer. monaco, wet, stinking rich. met stefan, half naked boat hand. surreal. day three: paracetamol, red bull and jambon subs. audi tt and its drivers have irreconcilable differences. another team fined for ‘pit stop’ at side of road. day four: long drive home. exhausted, elated, already planning 2011 event.

What Will it COst? All in, around £1,000 for a team of two. There’s a £500 non-refundable entry fee, payable upon booking. This reserves your place and covers your ferry crossings, accommodation, evening meals and breakfast on the Saturday, Sunday and

Monday. You’ll need to cover fuel and tolls.

You’ll then need to find a car for under £500 (which is capable of making the trip). The reason we’re launching this year’s event early is so you’ve got plenty of time to find the right car. Last year a few teams dropped out at the last minute because they couldn’t find a banger, so we want to ensure that doesn’t happen again.

What you buy obviously has to be road legal and you’ll also need to sort the insurance out. And when we say a maximum of £500, that’s at least what it has to show on the invoice… Last year the Carlyle Finance team arrived in an 02-plate Audi TT! At the end of the day BEN makes its money from the sale of the cars so the better it is the more money they make.

We’d also advise booking early. The first Bangers4BEN sold out within a week and we had to add more places so don’t delay in reserving your place. You can only do that by paying your entry fee and places will be allocated on a first come, first served basis.

Booking can be made on the BEN website at BEN.org.uk. Click on the Bangers4BEN link on the homepage to be taken to the page where you can pay by credit or debit card. We look forward to seeing you in October for what’s likely to be an amazing trip! carDealerMag.co.uk | 35

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advert1.pdf

28/02/2011

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big mike.

All Big Mike’s columns are on our website. Enjoy here bit.ly/bigmike

Why continuous insurance might be good for trade

T

his month, please allow me to be serious for once, as I’m about to let you into a secret… Okay, so it may be a bit difficult to take a bloke seriously when he has a 50-inch waistline, a flat cap and a pet Rottweiler that answers to the name of Fluffy, but something’s about to happen that’s going to change the independent car trade massively.

What is it? Continuous insurance, that’s what. Later this year (it was supposed to be last month, but Swansea, as usual, wasn’t ready in time), the DVLA is introducing a policy in which it is the registered keeper’s responsibility to ensure that any car not currently declared SORN will also need to be insured.

This Orwellian coming together of two massive computer systems – the DVLA’s Vehicle Records and the Motor Insurance Bureau’s MID (Motor Insurers Database) will mean there’s no place to hide for those horrid little scrotes that drive around without valid cover, or a care in the world for whose lives their negligence might affect.

Keep a car on the road, or taxed, without insurance cover and bang! Computer says no, and you’ll have to fork out an instant fixed penalty.

A few people in the trade have murmured that the new system is a pain in the what-not. Why? Because it means they’ll have to input the details of every car they take into stock on to the MID database. In theory, though, you should all already be doing this, not least as an arse-covering exercise against those indiscriminate ANPR cameras that traffic police like to have in their Volvos these days.

If the car’s not on the MID, it can be seized, trade policy or no trade policy. But more so because it’s a condition with most insurers, these days, that they know exactly which motors are on your books. For me, it’s never much of a problem – my insurer has a website into which all I do is type in the cars’ reg numbers. It then identifies the make and model itself and adds it to my policy. I then delete the cars as and when they’re sold – takes less than a minute per motor, and I’ve made it a ritual part of both the buying and selling process.

What few people in the trade have thought to consider, though, is the incredible impact this new regime will have on the private sales market.

Big

mike Our man on the inside spills the beans on the car business...

For guys like me, and other independents, it means rich pickings. Let me explain…

Today, as things stand, some customers shy away from part-exchanging their old car. They know that a dealer is unlikely to offer them as much as they’d realise by selling the car privately, so those who can afford to (often, if the car is worth less than £3k and they’re buying the new one on finance, they can afford to, as it’s a good way of releasing capital!) will sell their old vehicle themselves, once its replacement is sitting prettily in their driveway.

But what’s already happened is that they’ve changed their insurance policy to include the new car at the expense of the old one. They’re not planning on using it, so for the sake of the two or three weeks it’s sitting around

‘It will mean there’s no place to hide for those horrid little scrotes that drive around without valid cover’ awaiting a positive response to the Auto Trader ad, said old car is uninsured.

But when Continuous Insurance kicks in, that practice is banned, and said seller is left with no choice but to either insure two vehicles at once (and pay for the privilege), or trade-in his or her old car to a helpful soul like you or I, who has the flexibility in his insurance policy to not actually give a damn. Given the uncertain timeframe of selling the old car, the vast majority, I suspect, will plump for the second option.

And what that means is, for the first time in a very, very long time, we’re going to see oversupply in the trade-in sector. More and more cheap cars coming in through main dealers and independents, a greater supply of part-exes going through the auction houses and a shortage of private ads in our papers and auction websites. The competition, folk, will be trade-totrade. And it also means the very fabric of the independent end of the trade will change – more good clean cars, lower prices and less rubbish being punted around forecourts, left instead for the boys who operate out of lay-bys with fluorescent cardboard as their only form advertising. Assuming, of course, that they’re properly insured…

Who is Big Mike?

Well, that would be telling. What we do know is he’s had 30 years in the car trade and picked up some seriously funny tales along the way.

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forecourt.

Mark Blundell Peugeot UK’s product planning manager tells Car Dealer why he - and his dealers - are so excited about 508 How important is the new 508 to dealers?

Massively. It signals a statement of intent for us and dealers that we’re serious about the D segment. It shows we are serious about producing a car that stands up against the competition. And it gives fresh impetus to the B2B sales arena. As 407 has come towards the end of its life perhaps dealers haven’t approached local businesses as much as they would – whereas now they are very positive about 508 and they can.

How and to whom should dealers market this car?

Local businesses are key. We’ll be doing a lot internally in our fleet department to push this car too and prospecting customers to get appointments for dealers. We want to get traffic to dealers then it’ll be up to them to handle the enquiry and sell the features and benefits of the car. Our aspirations for 508 are fairly modest – 5,000 cars this year and 8,000 next. 407 at its peak did about 21,000 a year. That was in 2004. The market is different now with more niche products like MPVs and crossovers.

What sort of messages about 508 are key to get across to buyers?

We are pretty clear on those. The strap line for the TV commercial is ‘quality time’ so that’s how we want it pushed. Buyers might lead hectic, busy lives going up and down the country, but the moment they get in the car they’ll relax.

The marketing will build on this, saying that the best decisions are taken when the owners are in the car. We would hope dealers get 508 to where young professionals will hang out, so we’re thinking golf clubs, squash clubs, gyms.

So you’re gearing up for a big launch then?

Without doubt. 508 will be supported by the single biggest model marketing budget for 2011.

It’ll be the biggest spend this year.

The car has had really positive press coverage – the amount of times we’ve seen 508, Mercedes, Audi and BMW in one sentence is incredible.

It gives dealers a shot in the arm to stand tall and declare that we’ve got a car that can compete. In March every salesperson will come to our head office for a 508 training programme to learn about the key selling points. We’ve got a clear way we want the car presented, focusing on the features not just ‘the deal’.

‘‘

What about supply?

Well, I certainly hope there will be a waiting list for it. We’ve got very good control of our stock levels now. We try to let demand suck through the production so cars that arrive in dealers are predetermined. Average lead times are about eight weeks from start to finish.

lots of external validation as to what great cars we’re making now. I’ve taken a 508 SW home and my neighbours have asked why I’d bought a Mercedes back. I had to explain it’s actually our new 508. I’d say to anyone: Set aside your preconceived ideas, drive it, live with it for a week and then see what you think about it.

Will there be any challenges that dealers will have to overcome with this car?

We want to be on people’s shopping lists with 508 – if they’re after a Passat then we want them to think about this car too. All the way through this launch process the important people have bought into this car with people like CAP being very kind. Residuals are good and are around second or third in class.

What about a GTI version?

I don’t think there’s a market for it. Ford has the ST and Vauxhall has VXR options, but if you look at the sales stats it’s not a massive slice. To have it in the range would be nice if you’ve got the engine and the technology but you just don’t sell them. The range is so tax conscious now and CO2 led that we’re far better off positioning ourselves with fine design and quality.

We don’t want to do big fleet deals where dealers are just left to do the paperwork.

But how do you change perceptions of a ‘big French car’ with buyers?

I think we’re already doing that. 3008, 5008, RCZ have all won awards – we’ve had

With 85 per cent of sales to fleet and just 15 per cent to retail predicted, just how much business are dealers going to see?

A lot. Our directors believe that business needs to go through dealers. Yes, there will be fleet deals negotiated nationally but they will count towards dealer targets. We need our dealers to come along for the ride with this, we don’t want to do big deals and they’re left just to do the paperwork.

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themanual INTERIOR

LOOKS

the 508 feels distinctly premium inside. the quality of the materials and the ergonomics are spot on.

past peugeots have been a bit hit and miss in the large executive sector, but we think the 508 looks pretty good.

ENGINE

buyers can choose between diesel and petrol. our pick would be an economical diesel.

peugeot 508 The 508 is tasked with helping push Peugeot into the premium sector. James Baggott tries it for size What is it?

What’s the speC like?

Peugeot’s offering to company car drivers. Aimed squarely at the Volkswagen Passat and Ford Mondeo, the 508 aims to attract fleet buyers and user choosers with a premium feel, sharp styling and a focus on comfort. Some 80 per cent of sales will be to the fleet market with economical diesel engines making up the majority of sales. Two body styles will be available from the April launch: a saloon and a rather good-looking SW estate.

Average for the sector. Four zone climate control comes as standard on most models and there’s a tempting list of optional extras to ease a few extra pounds out of buyers. A head-up display, main beam assistance, keyless entry, automatic electric parking brake, and JBL stereo systems are all available. The SW has a stunning panoramic glass roof too.

What’s it like tO driVe?

Fun. Handling for a car of this size is pleasantly neutral with little body roll.

It’s compliant when pushed and will A variety of fuel-sipping diesels and certainly keep photocopier salesmen some surprisingly good petrol units. happy in the bends. The ride quality is Most popular with buyers will be the excellent with the suspension coping 2.0-litre 140bhp HDi diesel unit. While well even with poor road surfaces and emitting 125g/km and returning just the refinement is equally impressive. shy of 60mpg, it still offers reasonable It’s noticeably quiet at motorway speeds performance with 60mph achieved making for a relaxed way to travel. in 9.8s and a top speed of 130mph.

Top of the range is a 2.2-litre, 204bhp What dO the press diesel which has a potent 450Nm of think Of it? punch which is great to drive.

National newspapers were among the

What’s under the BOnnet?

first to try it for size. The Independent was impressed with the new car, saying ‘these new 508s are desirable cars which make a nonsense of the premium obsession’. The Telegraph’s Andrew English likes it too, saying it is ‘a handsome, fine-driving big saloon’, but added ‘the SW estate has all the panache’. Auto Express was more impressed with the SW out of the two bodystyles too, saying that it was ‘better looking’.

What dO We think Of it?

This isn’t your usual big, French wacky car – the 508 is actually rather grown up. Build quality is excellent, refinement on a par with premium brands and the drive entertaining enough to make a trudge up the M1 just about bearable. We’re looking forward to the Hybrid4 model, which combines a 168bhp diesel engine with a 37bhp electric motor, which arrives next year. That will boast 200bhp and four wheel drive but with emissions sub 100g/km!

the KnoWleDge Model: 2.0-litre hdi price: £18,150 (from), £20,950 (tested) engine: 2.0-litre, diesel power: 140bhp, 240nm Max speed: 130mph 0-60mph: 9.8s Mpg (comb’d): 58.9 emissions: 125g/km residual values (three years): 30 per cent

target Buyers: Who is this car aimed at?

40-50-year-old male, earning over £25k, high mileage company car driver. but there will be private buyers too.

the rivals: volkswagen passat, ford mondeo, vauxhall insignia

Key selling points: 1. it’s got presence few pugs have had before.

2. it’s comfy. drive from a to b and ‘you’ll arrive at b fresh’ 3. the 508 is actually pretty good to drive. it’s certainly not boring.

Deal clincher: The CO2 figures (from 109g/km) make it a market leader in class. carDealerMag.co.uk | 39

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fOreCOurt. the KnoWleDge Model: antara fWd price: £19,995 (tested model) engine: 2.2-litre, diesel power: 161bhp, 350nm Max speed: 117mph 0-60mph: 9.7s Mpg (comb’d): 44.8 emissions: 167g/km residual values (three years): 35 per cent

target Buyers: Who is this car aimed at? families and old folk. vauxhall is gunning for youngsters with the fWd and older families with the 4x4 version. fleets are likely buyers too.

the rivals: freelander, hyundai santa fe, chevrolet captiva

Key selling points: 1. 4x4 version can cope with british winters 2. considerably better to drive than the old antara.

3. good equipment spec on all models

Deal clincher: Efficient diesel engines in an attractive, restyled body from just £19,995.

LOOKS

antara’s new-look front has corporate grille and added creases, but will buyers be impressed by it?

Vauxhall hasn’t hit 4x4 success since the Frontera. The Antara is charged with changing that, reports James Batchelor What is it?

What’s the speC like?

After four years spent on the sidelines, the new Antara is Vauxhall’s second chance at this hugely fashionable sector. So it sports a new, more aggressive and dynamic face, numerous ‘underneath’ parts while inside a new console completes the changes. In its four-year life, Vauxhall only managed to shift 1,000 units a year of the outgoing Antara; now the new model is charged with achieving sales of 3,000 units per year. A tough job, so is it up to it?

There are four trims and even the basic, £19,995 Exclusiv FWD model is decently equipped. It comes with hill descent control, 17-inch alloys, air conditioning, electric parking brake, MP3 with AUX-In, leather steering wheel, and heated and powered mirrors. The top-of-the-range costs £26,905 for the 182bhp 4x4 SE and gets sat nav among other extras.

What’s under the BOnnet?

Two new diesel engines – a 2.2-litre available in 161bhp and 182bhp guises. Both have plenty of torque at 350Nm and 400Nm respectively and both are smooth, quiet and refined.

Diesel is the only engine because Vauxhall felt it was the best for the Antara’s target market of family buyers. Just like the Captiva.

What dO the press think Of it?

Auto Express felt that the new Antara ‘doesn’t do enough to stand out in an increasingly tough sector’ while Autocar said that while the new Antara is better than the old model, ‘this is really a Chevrolet Captiva and not worthy of the standards set by the latest European-engineered Vauxhalls – nor the best of the opposition’.

What’s it like tO driVe?

What dO We think Of it?

In a word? Unremarkable. The chassis changes can be felt though, with sharper steering, more controlled body-roll and less understeer. Overall on the road the Antara is easy to drive; only loud tyre roar and the new sixspeed manual ‘box proving stubborn sometimes marring the drive. It’s quite competent off-road too – even a rutted and snowy Scottish forest wasn’t a problem for the 4x4 version.

There’s no doubt that Vauxhall is doing its best to spark some new life into the Antara. The changes underneath are generally successful but giving the car a new grille and ‘aerodynamic-enhancing styling’ isn’t enough to make buyers recognise it’s a new model. Sadly the Antara is unremarkable and its sister car – the Chevrolet Captiva (right) is a better package for lifestyle family buyers.

Vauxhall antara INTERIOR

cabin boasts higherquality materials with new restyled centre console, but original five-seat layout remains.

HANDLING

chassis has been sharpened to make it more responsive. it’s actually good fun to drive.

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a

themanual SPEC

CAPABLE

chevrolet has played its age old trick – tempting buyers with a generous standard specification.

What surprised us the most about the captiva was just how good it was off road. in the snow it performed superbly.

NEW LOOK

the captiva has been refreshed inside and out – most striking is the gaping front grille.

Chevy Captiva One of Chevrolet dealers’ most popular models has been under the knife for 2011, reports James Baggott What is it?

What’s the speC like?

A refreshed version of one of Chevrolet’s most popular models.

The Captiva has been given a new look outside, a nip and tuck inside and boasts all-new engines under the bonnet. Chevrolet makes the bold claim that it invented the SUV 75 years ago with the Suburban and says it’s used those seven decades of experience in this car.

It’s here where the Captiva really stands out. There are three trim levels: LS, LT and top-of-the-range LTZ. Even the bottom of the range model comes packed with kit. Standard spec includes ESC, Bluetooth, six-speaker CD with MP3 compatibility, rainsensitive wipers, alarm, immobiliser, remote central locking, air con, 17-inch alloys, and electric windows. LTZ gets more including a reversing camera, sat nav and full leather. Buyers can only specify two options – a sunroof and brushed aluminium interior.

What’s under the BOnnet?

In the UK only diesel options will be offered. Other countries get petrol variants but market research suggested UK buyers weren’t interested in these.

Therefore buyers can choose between high-powered (182bhp, which will be the most popular) and low-powered (161bhp) variants of the new 2.2-litre VCDI diesel engine. We tried the more powerful of the two which emits 174g/km, returns 42.8mpg and can hit 60mph in 9.3s. Manual and auto gearboxes are available both of which are pretty competent.

What’s it like tO driVe? Like a big SUV. There’s nothing particularly remarkable about the Captiva apart from the fact it gets the job done without any fuss. The ride is good, it’s comfortable, and there’s lots of space inside. The diesel unit is a little noisy at low speeds, but punchy and capable. What’s really remarkable is just how good it is off road. On the launch we got to put it through its

paces in the snow and it performed impeccably.

What dO the press think Of it?

What Car? liked the spacious interior and said it was a ‘great looking SUV’, however the magazine’s testers thought the engines needed to be more flexible.

Fifth Gear, meanwhile, said the seven seats were handy and it also liked the looks, but it said the manual gear change needed to be better.

What dO We think Of it?

Chevy dealers love the Captiva as it attracts all sorts of buyers into showrooms – and the new model will continue that tradition. It’s a profitable car for the network so knowing this one is even better than the outgoing offering will please retailers. Okay, so it won’t set the world alight, but buyers will love the spec, genuine off-road capability and seven-seat usability in a car that looks pretty good too.

the KnoWleDge Model: 2.2-litre vcdi price: from £21,995 engine: 2.2-litre, diesel power: 182bhp, 400nm Max speed: 124mph 0-60mph: 9.3s Mpg (comb’d): 42.8 emissions: 174g/km residual values (three years): 33 per cent

target Buyers: Who is this car aimed at? existing captiva owners, downsizing premium suv owners and buyers tempted by the orlando who can be persuaded to upgrade.

the rivals: hyundai santa fe, kia sorento, vauxhall antara

Key selling points: 1. diesel engines are greener and cleaner than before 2. new looks inside and out make it really stand out 3. it’s actually very capable off road.

Deal clincher: It offers a premium specification and bold looks for a price that won’t break the bank. carDealerMag.co.uk | 41

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fOreCOurt. the KnoWleDge Model: range rover sport hse price: £55,145 (as tested) engine: 3.0-litre, diesel power: 242bhp, 600nm Max speed: 124mph 0-60mph: 8.8s Mpg (comb’d): 30.7 emissions: 243g/km residual values: 45 per cent

target Buyers: Who is this car aimed at? city and country folk. but a good deal of footballers buy them too.

the rivals: bmW X5, bmW X6, cayenne

Key selling points: 1. the new 3.0-litre diesel is more efficient and faster than the old 2.7-litre 2. high quality interior impresses 3. range rover name adds cache rivals can only dream of.

Deal clincher: New TDV6 engine is our pick of the range.

$'9(57 QHZ ORRN 35,17 LQGG

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range rover sport tdV6 The Chelsea tractor has had a make-over with new looks and a cracking new 3.0-litre diesel. James Batchelor tries it out.

What is it?

It’s the sporty Range Rover, but now has a new and more efficient engine, wrapped up in a body that has been restyled and given a sleeker look. We like it a lot.

What’s it like tO driVe? It handles like a 4x4 really, but LR have tweaked the suspension and steering making the new Sport just that little bit better to drive.

What’s under the BOnnet?

What dO the press think Of it?

A 3.0-litre, twin-turbocharged, sixcylinder diesel engine that is shared with the Discovery 4, and Jaguar XF and XJ. It replaces the old 2.7-litre unit.

Car felt the Sport ‘is all the car you’ll ever need’ but Autocar thought it was too ‘blingy… an aesthetically toneddown version would be welcome’.

What’s the speC like?

What dO We think Of it?

There’s SE, HSE, Supercharged HSE, and Autobiography Sport. All are impressively equipped with prices starting from £47,995 and rising to a whopping £72,495.

The TDV6 is the best engine in the range for obvious reasons. It’s a shame the new Sport has a hard ride and rear seat passengers sit bolt-upright. Still, we wouldn’t turn one down...

4/3/11 16:26:08

6

themanual

porsche Cayenne

The Cayenne has always been loud, brash, and in your face.

The new diesel aims to change that, reports James Batchelor What is it?

It’s the most important Cayenne to buyers as it provides all the looks of more powerful models, but is cheaper to run (considerably) and is more politically correct to boot.

What’s it like tO driVe? A saloon car on stilts. The Cayenne is very car-like to drive unlike other rivals, with more precise steering, and dynamic handling characteristics.

What’s under the BOnnet?

What dO the press think Of it?

It’s the engine straight out of the new Volkswagen Touareg – an excellent 3.0-litre V6 diesel that produces 237bhp and a whopping 550Nm of torque. That’s produced very lowdown with little turbo-lag.

Autocar felt that with the Diesel being almost half the price of the Turbo ‘it’s hard to ignore’, while Top Gear said ‘it’s the best compromise’ in the sector.

What’s the speC like?

The new Cayenne looks substantially better that its predecessor. It looks smaller too despite it being a tad larger, and the diesel engine makes far more sense that a petrol unit.

The diesel costs from £45,256 and has far too many standard features to list.

Suffice it to say, the basic model has most customers would ever need.

What dO We think Of it?

the KnoWleDge Model: cayenne diesel price: £54,492 (as tested) engine: 3.0-litre, diesel power: 240bhp, 550nm Max speed: 136mph 0-60mph: 7.8s Mpg (comb’d): 38.2mpg emissions: 195g/km residual values: 33 per cent

target Buyers: Who is this car aimed at? buyers who are put off by a petrol because of emissions and economy will want it.

the rivals: bmW X5, range rover sport

Key selling points: 1. it’s agile for a car of this size, and performs impressively too 2. the turbo grabs the headlines but diesel makes the most sense 3. car-like cabin makes it feel like ‘a saloon on stilts’

Deal clincher: Own a Cayenne with a clear conscience!

Unlock your potential

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fOreCOurt. the KnoWleDge Model: hyundai i10 price: £9,345 (tested), range from £8,195 engine: 1.2-litre, petrol power: 77bhp, 118nm Max speed: 102mph 0-60mph: 12.8s Mpg (comb’d): 56.6 emissions: 119g/km residual values: 40 per cent

hyundai i10

The Korean firm scored big with its i10 under scrappage. This new-look i10 aims to continue that, reports James Batchelor What is it?

It’s a comprehensive makeover for the car that defined the scrappage scheme. New front end, some new engines and an ultra- efficient 99g/km model is key.

target Buyers: Who is this car aimed at? all types of people. oaps and students alike adore the car.

the rivals: kia picanto, ford ka, suzuki alto

Key selling points: 1. more aggressive and contemporary styling 2. Well built with high-quality plastics used throughout 3. high residual values and has won many prestigious awards

Deal clincher: Small, fun, cheap, well built and a good image.

What’s it like tO driVe? The old car’s chuck-able chassis and soft suspension remain, meaning it’s comfortable, a doddle to drive and fun around the city.

What’s under the BOnnet?

What dO the press think Of it?

Hyundai’s latest petrol engine technology. A new 1.0-litre, a more efficient 1.25-litre engine, and new 1.0litre which emits 99g/km CO2 and is branded as ‘blue’. That benefits from free road tax – a big draw for buyers.

Honest John hails the i10 as the ‘best small car on the market’, while the little city car has also won numerous awards from Auto Express for being a cracking supermini.

What’s the speC like?

What dO We think Of it?

The new i10 is well equipped. Prices kick off at £8,195 for the Classic which has air con and MP3 connectivity, and max out at £9,345 for the Style.

We love it. It’s great to drive, well-built, holds its value well, is keenly priced.

And, with the new restyle, it has the looks of Hyundai’s exciting future cars.

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Keep It This Clean For Longer Purchase any Hot Water High-Pressure Cleaner from Kärcher and get £100 cashback*. Ř 8.őV ODUJHVW QHWZRUN RI LQGHSHQGHQW GHDOHUV Ř ,QGXVWU\ OHDGLQJ UHOLDELOLW\ Ř (FR PRGH JLYLQJ VXSHUE SHUIRUPDQFH DQG IXHO VDYLQJV Ř &OHDQLQJ HTXLSPHQW IRU HYHU\ WDVN To find out how Kärcher makes a difference call 01295 752 142, email hds@karcher.co.uk TXRWLQJ &DU'HDOHU$SU RU YLVLW www.karcher.co.uk Valid from February 1st 2011 - June 30th 2011

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44 | carDealerMag.co.uk

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themanual

SUNROOF

panoramic sunroof is full-length and comes as standard. it gives the car a fantastic feeling of space inside.

LOOKS

gone is ugly shape of yaris verso – instead are the looks of iQ and even Jazz.

FLEXIBLE

fold-flat rear seats are operated by a handle in the boot – it’s simple but very effective.

toyota Verso-s Toyota sold 150,000 Yaris Versos in the UK – the Verso-S is its overdue replacement. James Batchelor climbs aboard What is it?

What’s the speC like?

This is Toyota’s return to the B-MPV market – a sector it has been absent from since the demise of the rather ungainly-looking Yaris Verso in 2006. The Verso-S is a five-seat car intended for small families who want something larger than a Yaris, and ‘empty nesters’ who are looking to downsize from C-segment cars. Toyota believes it’ll sell 3,000 this year, and 3,120 in 2012. A strangely precise estimate...

Simple – just two models. The most popular in the range is expected to be the £14,645 TR edition which has the standard panoramic roof as well as seven airbags, radio/ CD/MP3 player with USB, and a onepull rear seat fold flat system which can be operated from in the boot. The range tops out with the T-Spirit model which comes with 16-inch alloys, touch-screen multimedia interface, air conditioning, flexible boot floor, rear camera, and costs £15,745.

What’s under the BOnnet?

A 1.33-litre VVT-i petrol unit which produces 98bhp, 125Nm and emits 127g/km – and that’s it. The firm says a diesel is ‘unsuitable’ for the UK market, but the rest of Europe will get it. Two transmissions are available though, a six-speed manual and a seven-speed CVT gearbox called Multidrive S. The latter is the most fuel efficient which claims an mpg figure of 54.3 over the manual’s 51.4mpg.

What’s it like tO driVe? Easy – the Verso-S is perfect for its intended market. Customers will like the light steering and clutch as it’s ideal in the city, but they won’t like the big pillar that ruins rear visibility – however all models do get a parking camera. The 1.33-litre engine is smooth at low revs but on motorways it is loud, and with only 125Nm of torque at 4,000rpm it may struggle with five people on board.

What dO the press think Of it?

Autocar felt that while the Verso-S is a good car, its rivals do a better job and that ‘it becomes hard to recommend, despite its worthy merits’. Honest John was of the opinion that ‘you should certainly consider it and bear in mind that in the standard TR spec you do get a lot of equipment that you don’t get in lower-priced examples of its competitors’. Overall it scores three out of five in road tests.

What dO We think Of it?

It’s ideal for those customers who bought the old Yaris Verso, and it’s also rather good for young families too who want a little more space than a Yaris. The Verso-S also has neat touches like seats that can be folded by pulling a door-like lever in the boot, while the floor can also drop on certain models creating more space.

But while it’s good, the Verso-S doesn’t have the flair of the Hyundai ix20 or the ingenuity of the Honda Jazz.

the KnoWleDge Model: toyota verso-s price: from £14,645 engine: 1.33-litre, petrol power: 98bhp, 127nm Max speed: 106mph 0-60mph: 13s Mpg (comb’d): 51.4 emissions: 127g/km residual values (three years): 38 per cent

target Buyers: Who is this car aimed at? primarily ‘empty nesters’ and young families who want a little more space.

the rivals: nissan note, hyundai ix20, honda Jazz

Key selling points: 1. it’s wonderfully spacious with a panoramic glass roof 2. simple fold-flat seat system – perfect for target market 3. the automatic falls into £30 tax bracket – rivals don’t

Deal clincher: Toyota knows this market inside out and the Verso-S is a good contender. carDealerMag.co.uk | 45

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feature.

Clean

team Car valeters are the unsung heroes of car dealerships. To find out exactly what they do we sent James Batchelor to do a proper day’s work

A

utoKlean began eight years ago with the owner washing cars with a bucket and sponge. ‘I can remember it vividly,’ Kyros Michael tells me. ‘I started out on a weekend trial at an independent garage with a bucket, sponge and a pump. I remember it so well because I had to scrape all the snow off the cars before I began valeting them.

‘After the first day, the owner handed me his business card and told me to name my price to wash all of his cars. That garage became our first client and one of our biggest.’

Fast forward eight years and Michael is now sitting in front of me in a sharp grey suit with his marketing director, Dave Martin, to his side.

We’re at Walton Audi, one of AutoKlean’s longestserving clients, with mugs of coffee in hand chatting about the company.

‘It was at that independent garage where we got our first contract when we realised that valeting companies who specialise in the motor industry only supply a car cleaning service,’ explains Michael. ‘Actually, it’s not a service at all – it’s providing bodies to clean cars. Valeting is a second consideration, and service is not considered at all.’

Martin adds: ‘This is what we can offer. We can supply drivers, office equipment, showroom cleaning, collection and delivery, and we can even supply guys who can do odd jobs around the dealership. While we are primarily car valeters, we can even supply dealers with guys who can weed your forecourt.’

Flexibility in being able to offer a complete valeting package for dealers is one of the reasons why AutoKlean has developed into a specialist company. It’s why they have franchised dealer clients ranging from Robins & Day Peugeot to Sytner Porsche, independent garages, and bodyshops.

The other reason is the service AutoKlean offers. Starting out as a car valeter himself,

BATCH, 21

staff writer/coffee boy, only ever cleaned his room, never got hands dirty, this is most dressed down he’s ever been.

Michael knows how businesses operate, so he has tailored his company to match the requirements of his clients. ‘We offer a personable and professional service. For example, if someone asks us to supply them with four people, by 6am I know if one is off sick, by 6.30am I will have found someone to stand-in, and by 8.30am they will be ready to start with the rest of the crew.

‘Another example is if someone has requested a holiday, we don’t just replace them with someone else who’s unfamiliar with the client’s routine – the replacement will work alongside the person who’s leaving for their holiday the day before to learn the routine and the work required from him.

‘Essentially, we offer a service that takes all the concerns and worries of running a group of valeters away from the client – we do what we do best while they do what they do best,’ Michael says.

‘But on the rare occasion we can’t find cover,’ adds Martin, ‘Kyros or I will do the job! That’s great for the valeters and for the dealer principals to see us getting stuck in too – we know what we’re doing and, frankly, we enjoy valeting cars.

We’re not always wearing suits,’ grins Martin.

But there the conversation stops. ‘Now it’s your turn to get stuck in, James,’ says Martin. ‘All the guys are waiting.’

Walking past the rows of spotless and gleaming Audis, I’m aware that Michael has high

46 | carDealerMag.co.uk

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autoKlean’s Kyros Michael and Dave Martin

Batch tries to fit in with the experts...

MICHAEL, 28

professional valeter, can spot a smudge at 30 paces, knows most audis inside out, fed up with feckless journo.

‘‘

We know what we’re doing and we enjoy valeting cars – we’re not always wearing suits!

... but soon realises real work is hard expectations of his staff. Luckily, I’ve been placed in the trusted hands of Islam Uddin – site supervisor.

Located ‘out the back and along a bit’, AutoKlean’s valeting site is a long but narrow Perspex hut. On the to-do list today is an assortment of used and new cars as well as some that have come in for a service.

That means 30 cars will be valeted, prepped and generally made to look showroom-fresh today – and I’m lending a hand.

My first job is to help with a filthy A3 S-line that has been part-exchanged for a much newer model and will be put out to pasture with the other immaculately presented approved used Audis.

‘Here’s your cloth and some gloves – let’s get started,’ smiles Islam Uddin.

autoKlean spruce up some 50 cars a day

car Dealer club members get free legal advice worth £199. sign up at carDealerclub.com | 47

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AT103

feature.

Uddin is responsible for the five-man team at Walton Audi who are here throughout the year in all weathers and, like moths to a candle, pounce on the A3 and start to transform it back to the way it left the factory immediately.

First up is a blast of the power washer, and then it’s lathering the car in a thick, soapy shampoo. I’m in my comfort zone here for shampooing my car is something I do every weekend, but I’m not prepared for the speed at which AutoKlean’s valeters do it.

While I am cursing Audi at making their grilles so difficult to clean, the guys are already leathering the car down, breaking out the high-sheen polish and cleaning the engine bay.

It takes AutoKlean’s guys two hours to clean a used car thoroughly inside and out. Naturally, not all the cars are like the A3 which look as though it’s taken part in a round of the British Rally Championship. But no matter what state they come in, they are all treated to the same level of fastidious cleaning.

We’ve soon moved on to the final part of the valet – the interior. ‘This is probably the most important bit,’ says Michael. ‘You’ve got to remember this is the place where the customer actually experiences the car. And when they buy the car, they want the feeling that they are the first to sit in it – even if it’s a four-year-old car.’

So, with that statement ringing in our ears, it’s out with the vacuum cleaners, shampooing brushes, window polish, plastic cleaners and even paint brushes for the air vents. Islam and I are tasked with the job of cleaning the boot – quite a nasty job when its former residents were, one assumes, a pack of dogs.

Within half an hour the boot and the interior have been transformed to a condition that Ingolstadt would be pleased with. ‘Approved’ plates are fitted and it’s wheeled out of the valeting bay looking like new.

Next up is an A5 Coupe that has to have a full exterior valet within 20 minutes, but one car is enough for me – I’m exhausted. And that is the professionalism of AutoKlean’s valeters; they’re here from 7.30am to 6pm, all year round, putting money back into cars.

‘With the economy the way it is,’ adds Michael.

‘There has never been a better time to invest in valeters. Customers are demanding extraordinary levels of quality in used cars, and by employing a team of valeters like us you can increase the chances that your customers will drive away happy and will want to return to you for aftersales, or even to buy a new car.’

Martin adds: ‘We’re concentrating heavily on finding new clients at the moment. Whether large or small, we’re interested in talking to dealers personally. By that I mean Kyros and I will meet you to talk you through the benefits working with AutoKlean can give you, and we can find out how to tailor ourselves to suit your business. We’ll even wear the suits!’ [CD] 48 | carDealerMag.co.uk

CarDealerIss37.indd 48

autoKlean experts fix Batch’s poor effort

Batch managed to clean a wheel. in an hour

autoKlean named a hoover after our man

old faithful – Karcher is the pro’s choice

Insight The advantages of Autoklean at an average site, autoklean’s trained valeters can clean 50 cars a day – that’s inside and out and returning them to ‘showroom’ condition. autoklean’s range of services is broad, and their service is cheaper in the long run. this is due to them consistently providing a high quality service, and the hassle of managing a team of valeters is taken away. how can they guarantee this? ‘it’s because i make sure it does,’ says michael. ‘Whether it’s me or another senior manager doing the regular onsite check, we’ll make sure you’re happy with the results.’ autoklean will offer uniformed valeters, provide their own equipment and chemicals, be flexible to cover sickness or holidays, and are trained to a high standard. but, above all, autoklean’s programme is geared up to suit your business. contact: autoKlean.co.uk, 0845 408 2975

the old bucket and sponge winning combo

Words fail us

4/3/11 16:27:13

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feature.

CARRERA GT

registered in 2004, this gt has 7.5k on the clock. original price was more than £300k, now it’s up for £314,950.

toy shop Millionaire’s

WORDS: JAMES BATCHELOR | PICTURES: DEAN SMITH

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911 SC

only 250 sport classics were built by porsche in 2010. £140,049 was the list price – this one’s yours for £144,950.

FERRARI F50

one of 349 built and one of 302 red f50s. more than £300k was asked by ferrari in 1997. now you’ll have to call for a price...

Romans counts the rich and famous among its customers.

We find out what it’s like to sell cars that can go for seven figures

I

magine, for a moment, it’s a normal day selling cars at your dealership. You’ve had your morning sales meeting at 9am sharp, the post arrives at 10am, and by 11am your stomach is looking forward to that cheese buttie you’ve got the junior to order you from the sandwich shop around the corner.

However, your morning coffee is interrupted by the arrival of a blacked-out Mercedes S-Class.

Its occupant is the representative of a wealthy Arabian family who’s come to you to buy three

cars. By lunchtime, the transaction is complete.

Three of the world’s finest supercars are no longer your property, but a sum of nearly £2m is in the dealership’s bank account.

Surely, this is a dream scenario? No car dealership in the UK could boast of such an occurrence, could it? It is an unlikely event, for sure, but one that could well happen at Romans International of Banstead on a weekly basis.

We’re not talking about the cheese sandwich, obviously, but selling cars to the richest customers

in the world – it’s something that happens every day there. The family-run firm has stock worth approximately £7m and has been selling the world’s most exclusive cars to the rich and famous, providing unparalleled choice, advice and service for more than 30 years.

Car Dealer was lucky enough to spend the day (and most of the night) at the Surrey-based dealership, drooling and finding out what it’s like selling such incredible cars. Who says we don’t do serious features? carDealerMag.co.uk | 51

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FEATURE.

A

t a quick glance, Romans is an otherwise ordinary car dealership. It resides on the busy A217 that cuts its way through the suburban areas of Surrey into London, and is on the same block as Dagenham Ford.

Even the grey signage is tasteful and subtle – but the cars that sit on the forecourt and inside the showroom are anything but. These are expensive and exclusive machines and, in some cases, are the rarest of their breed.

But that dream scenario of a customer buying three cars at once is a not uncommon occurrence at Romans. ‘Only yesterday we sold three cars to a sheikh,’ says Paul Jaconelli, founder of Romans International. ‘The representative of the sheikh came down and bought the Mercedes-Benz CLK GTR, a Ferrari Enzo, and a Noble M600. He came to us because he knew that we had one of just 25 GTRs in the world (and probably the best one), one of the finest Enzos in the world, and we represent the worldwide distribution for the M600.’

Jaconelli has always had an interest in not only supercars, but in cars in general. ‘When I was 15 we lived opposite a garage, and it was always my dream that one day I would be a car salesman.

I became their Saturday boy to start with and then moved into their paint shop, and I used to do various jobs including night work at the BBC, a morning job at a sandwich shop, and cleaning cars in the afternoon to raise enough money to start up my own dealership.’

Romans hasn’t always been at Banstead. In its early days it was quite the big player with one site in Ewell, one in Guildford, three in Epsom and one in Tadworth. When Jaconelli sold out to Malaya (HR Owen) in May 1994, Jaconelli kept the site at Banstead.

It was a good job Jaconelli did keep it as the firm is now known internationally as a supplier of the very best specialist cars.

Cars like just one of two Ferrari Enzos the dealership has for sale. Sitting alongside the sheikh’s 500-mile Ferrari Enzo, which was sold for £750k, is another which has been officially branded as the ‘world’s best’.

‘It was registered in June 2007,’ explains Jaconelli. ‘It has just come back from Ferrari Classiche which classified the car as the best in the world.’

The story goes that it was bought by a collector who had it shipped to Maranello sales at Egham, but he fell ill before collecting it. The car was in storage there for three years until the estate of the owner wanted to sell it – only Jaconelli was brave enough to buy it. The dealership staff later told us if they drove it around the block they would wipe £500k off its value.

Is it for sale? Jaconelli pauses. ‘Everything is for sale… at a price,’ he laughs. ‘But if someone wasn’t prepared to spend in excess of £1.5m, we wouldn’t let it go.’

Despite selling some of the world’s most exclusive motors, selling cars destined simply

That Enzo at the front has just been sold... for £750k.

Can we interest you in a £42k Fiat 500 instead?

Paul Jaconelli: Brave enough to buy two Ferrari Enzos

‘‘

for collections still saddens Jaconelli.

‘The sad thing about these cars is that they will get rarely used, if at all,’ he says.

‘Ferrari built that car to be the best in the world to go around a track, but few are treated like that.

It’s a competition by owners to boast about the number of miles their car has done. Ironically, the best Enzo I have ever driven was one that had done 23,000 miles!’

However, it is not just car collectors who buy from Jaconelli. ‘We also deal with a number of footballers. They don’t tend to buy the Bugattis, it’s mostly Bentleys, Ferraris and Range Rovers they’re interested in,’ he explains. ‘But what we really specialise in is the very best of each type of car. So if you wanted a new Bentley Mulsanne, we

The sad thing about these cars is that they will get rarely used, if at all.

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Most expensive?

‘The most popular brand we sell is Ferrari,’ says Jaconelli. ‘But the most expensive car we’ve sold was a Bugatti Veyron SuperSports for £1.6m last year. I think we will break that record this year though. We’ve got two customers who are looking for McLaren F1s, and they won’t be able to buy one for under £2.5m.’

Corporate image Behind the story When I used to work at Auto Express I used to ride past Romans every day on my way to and from the office. Despite the fact the stock rarely changed on a day-to-day basis I still couldn’t help but stare longingly through the windows as I waited at the lights across the road.

I’ve been back a few times since, marvelling at the incredible machines the team manage to assemble every time. But this time I wasn’t stuck outside too scared to go in – this time we got the inside track from the team.

The questions I had were plentiful – how much is the stock worth? How do they get insurance? What is it like locking up knowing you’re leaving the place unattended?

Fortunately the Romans guys were more than happy to answer our questions. Trouble was it was hard to concentrate on what they were saying…

James Baggott editor

would have the car that has done 2,000 miles and has EVERY option on it. The average car is not something we buy because the typical Romans customer is looking for the last word in a car.’

Like most car dealers, Jaconelli knows what he likes and what will sell. ‘We proactively source the best cars in the world, and we are known for that.

But while our buying policy makes customers comfortable in what they’re buying, sometimes I wonder whether our criterion is too strict. We won’t buy a car that has been in an accident, for example, and we won’t buy a car that hasn’t been properly maintained and looked after by the manufacturer, or a car that has any dispute over its legitimacy.’

In Jaconelli’s showroom, sits two brand new Bentley Mulsannes. So how does he get hold of the latest machinery? ‘It’s mostly due to customers’ circumstances changing,’ explains Jaconelli. ‘They’re on manufacturers’ waiting lists for years and, naturally, their circumstances change when they eventually get the car, so they sell it to us. They often sell us just the order.’

Then comes the other enjoyable part – selling the car on to a customer wanting that dream machine. The selling process is no different.

‘But,’ says Jaconelli, ‘it’s the people buying them that are. The type of person who can afford to spend a million pounds on a car is used to getting what they want, and expect a level of service which we have to provide.

‘The problem you have in selling cars of this type of money is the salesmen. If you get the wrong type of salesmen they will be intimidated by the buyer, because they are completely in awe of them. So we have to have salesmen who are completely unfazed by customers.’

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FEATURE.

S

o, how do you go about choosing staff that won’t be scared by a wealthy sheikh or a celebrity splattered across that week’s OK Magazine? ‘It’s easy – most of our staff have been here since they left school,’ Jaconelli says.

‘The sales admin girl came as a junior, and the four car prep boys joined when they were 15 and they are now in their 40s. I’ve also got salesmen who have been here for “a while” too.’

One of those salesmen who has been at Romans for ‘a while’ is Anthony Gallay. He joined when Jaconelli was at the helm of a Fiat dealership as an apprenticeship mechanic 25 years ago – and has been there ever since.

He’s a good person to quiz about the nitty gritty elements of the dealership. While Dean is snapping our cover shot I chat to him about how business has been lately. He explains February had been a top month for the dealership with things really ‘turning a corner’ after a tough winter.

‘The recession was tough, bankers were told they needed to tone it down a bit and be careful what they turned up to work in, but those at the very top still bought,’ he said. ‘Money breeds money. They made a killing in shares, bought property on the cheap and got richer. Some just didn’t want to be seen driving around in the latest flash car. It wasn’t that they couldn’t afford it.’

‘December was quiet for us, and January too.

Most of our customers go away for Christmas then come back mid-January, do two weeks work then decide what they want to buy for their summer toy. Most of our buyers are prolific changers too.

They swap their cars every six months and always Romans often want something new.’ gets new cars So what about finance – does Romans offer it? first because it ‘Yeah, we do a lot of that,’ says Gallay. ‘Santander is buys orders from our main financer, we also use Bridford and ING, but customers whose a lot of deals are done cash. Many just look at the cars circumstances online, email us for a few details then pay over the have changed. phone. Some like to come in and haggle, but not all.’

That’s where this Insurance must be pretty had to come by, Bentley Mulsanne though – a dealership with millions of pounds came from worth of stock must scare most brokers off? ‘Well, it costs us a lot of money, that’s for sure,’ he says. ‘We have policies to cover staff driving the cars and for the site. There’s CCTV here and it’s all alarmed, but at the end of the day if someone wants to get in fast without doubt but so easy to drive they will – it’ll just be a rather noisy process!’ fast,’ he says understandably excitedly.

Working at Romans has allowed Gallay to drive ‘The Enzo is pretty special too.’ all of his dream cars. ‘The Veyron is my favourite – We’re back to the subject of Ferraris again, and in particular that Enzo. It’s probably due to not only Jaconelli being a life-long Ferrari fan himself, but it’s also about Romans ‘We very, very rarely go out on test drives being THE place to buy the best because we could be out on them all day, Enzos in the world. every day. But I have done a test drive in a Bugatti…. with Simon Cowell,’ Jaconelli That’s why a famous singersays casually. ‘We went out together in it. songwriter bought his Enzo from He decided he was going to have it, and he Romans – a deal that Jaconelli wanted it for his house in Beverley Hills. So we considers his most memorable. arranged a deal with the Bugatti showroom ‘One day back in 2005, my son came bouncing over there because emissions differ in Europe into my office saying that he was going to try and and America but he still got his Bugatti. He’s a sell Rod Stewart a red Enzo,’ reminisces Jaconelli. very good driver – nice chap too.’

‘My son said that Rod was going to fly here in his

The X-Factor

‘‘

helicopter and come and have a look at it – my son had just started, he was young and easily impressed – and I didn’t believe him. I remember replying, “Of course he is, he’s going to land it out on the road isn’t he,” and thought no more of it.

‘The next day, my son walked into my office and said: “Wake Maggie, I think I’ve got something to say to you.” He stepped aside, and in strode Rod Stewart. He spent most of the day here, and did the whole nine yards on it. I remember when he started it up it almost blew the windows of the showroom out, and then he bought it. I delivered the car to his house in Essex a few days later, and

I will never forget driving an Enzo with Rod Stewart

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Tilt shift pictures Behind the story YOU may have noticed something a bit different about the pictures in this feature.

As most owners treat these cars like toys I decided to use a technique called ‘tilt shift’ to capture them in a different way.

This was the first time I’d used the special lens needed to take these pictures. It works by tilting the lens plane in relation to the image plane. The technique is also called ‘miniature faking’ and, as you can see from the photos, it does exactly that. The subjects are reduced to toy-like proportions with only a minute area of focus. It’s challenging to do as the lens is manual focus and has a shallow depth of field, so you don’t get an impression of the final shot until the photo is on the page to see whether the technique has worked or not. I think it has.

Dean Smith photographer

Rod told me to take him out for a spin in it.

‘I will never forget driving an Enzo with Rod Stewart in the passenger seat, and trying to avoid pedestrians who were standing in the road with their phones taking photos of us!’

The future for Romans is looking good too.

Plans are afoot to knock the pub down next door and extend the showroom to allow another 40 cars to be on show, but the security of the business is also strong. ‘I’ve got a daughter of 35, a son of 27, a son of 24 and my youngest son is 17. The eldest son currently works in sales, the 17-year-old says he’s going to join when he’s left university, and the middle son – he’s much more artistic and too laid back to become a car dealer,’ says Jaconelli. ‘Some people build a business to sell it, but we believe we have built a business which will stay in our family forever.’ [CD]

The CLK GTR naked. It is one of only 25 in the world

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feature.

911 For 2011

We’re moving up the trading tree

the stOrY sO far...

Bought for... £0 sold for... £250

Bought for... £0 sold for... £790.03

Bought for... £985.25 sold for... £2,150

F

irstly some housekeeping.

We made a slight accounting error last month which I’ll blame on doing sums on deadline. Our current total doesn’t currently reside at £9,418, it’s in fact the slightly lower figure of £8,970.

The cash counting cock-up came to light when we were handed over £8,250 for the Mercedes CLK. As reported last month we’d had a few issues with the convertible roof on the 03-plater and it had been in the hands of our tame technician Matt Kendell to put right.

After a few visits to the local Merc garage and some new parts, Kendell had got the roof working again with the final bill totalling just shy of £700. You may remember, Mercedes Benz of Bolton boss Andy Banks couldn’t bear to see BEN go without so offered to cover the cost of repairs.

Kendell’s receptionist’s mum had been lined up to buy the Merc after spotting it during a visit to the garage. We struck a deal for £8,250 on the condition the roof would be fixed so as soon as it was we were handed a bundle of the folding stuff and we never saw the CLK again.

So with just shy of £9k burning a hole in our pocket it was time

The CLK has gone and we’ve invested our pot into the next step on our ladder to plot our next move. We wanted something that we could sell on quickly, that was in demand and that wouldn’t need any remedial work. We’re keen to get to our target of a Porsche 911 quickly – which we’ll eventually sell in aid of BEN – so the more money we can make on each step the better. Another healthy £2k jump would see us perilously close to our £12k target.

So I set about making a few phone calls to press contacts. Instead of taking the risk of buying a car from auction that we’d struggle to make £500 on, I decided twisting a few press officers’ arms to do their bit for BEN would be the best call.

Enter stage right Citroen with a cracking offer. Communications chief Marc Raven promised to find us a car within seconds of us firing off the email asking for help. And true to his word he was back in touch just a week later with the corker you see here.

It’s a C4 Grand Picasso with the fuel-sipping 1.6 HDI diesel engine and comes in VTR trim with the

EGS auto gearbox. It’s done just shy of 19k on a 58-plate and comes from the firm’s contract hire fleet.

Paul Drake, Citroen’s used vehicle sales manager, was the man that found us our next steed. ‘The vehicle books at £8,500 but dealers are paying up to £1,000 above book for them at the moment and it should retail for a minimum of £9,995. It might even go at £10,995.’

So what did we pay for it? Well, with a bit of generosity from Citroen thrown in, we’ve shelled out £8k on it. We’ve also added 12 months tax at £110 as it always makes them easier to sell.

At the time of writing this we’d only just taken delivery of the C4. It was pulled from a BCA auction for us and has a new wing mirror to fit as well as some cleaning to do.

The plan is to turn it around as soon as possible for around the £10k mark. That would take our total just one more trade away from our target.

We’ll be putting it up for sale on Auto Trader or similar this month.

Wish us luck… [CD]

Bought for... £2,000 sold for... £5,005

all bought for... £500 all sold for... £2,720

Bought for... £6,000 sold for... £8,250

Bought for... £8,110 sold for... £? in the pot... £860 carDealerMag.co.uk | 57

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feature.

Highland

Ker-ching James Batchelor chats to DSG Financial Services about why they felt opening a new office in Scotland was vital to the firm’s success

H

aving a strong financial partner is probably one of the most important relationships a dealer can have at the moment. Not only does being able to offer effective and reliable financial products help you to sell more cars but, in the long run, the profitability of your business is strengthened no-end.

However, many companies have a ‘one size fits all’ policy when it comes to offering support to its dealers, believing that one office is all that is required in dealing with dealers’ concerns.

We’re not talking about call centres in India, but UK-based offices that are not so far away from your forecourt of used cars that you feel completely left alone. All you probably want is the option to have a friendly chat on the phone, or be visited by a representative – but that’s difficult

Dsg spotted an opening for an office in scotland so took the plunge

when the finance company’s office is at the other end of the country.

That’s not the case with DSG Financial Services. They have recently opened a new office in Glasgow to offer its Scottish dealers all the help and advice they’ve come to expect from the firm over the last two decades and more.

‘We already had an existing network of dealers and had long and successful relationships with dealer groups in Scotland,’ explains David Quate, DSG’s regional development manager for Scotland. ‘We found there was a high demand to enhance the service we already provided them, and the dedication we gave to those dealers.

‘What we have done to make those dealers happy is to open a new office in Glasgow. This allows us to help our Scottish customers in the very best way with all manner of things, but primarily on the processing side. Ultimately it is improving on a level of service which dealers have known and liked from us for many years.’

Having a local office for local dealers is a smart

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see dsg’s scotland team in our exclusive video bit.ly/dsgvideo

Dsg boss richard hoggart and the firm’s new offices in scotland, below

‘‘

By having a local office, we have experienced our volumes increasing by 25 per cent.

move by DSG as it not only helps retailers, but makes them feel as though they are being treated seriously and looked after properly. The move, effectively, embodies one of DSG’s core values of listening and delivering to what their customers want.

The office, situated just outside Glasgow city centre, has only been open since May but the firm has already seen the benefits. ‘Within that short period of time we have realised that there is a lot of potential for additional business from existing dealer networks, from franchised dealers, and from independents based in Scotland,’ says Quate.

So what has been the impact of the move on the business? ‘Oh, it has been fantastic,’ replies Quate. ‘By having a local office, a local team and a dedicated group of network managers, we have experienced our volumes increasing by 25 per cent right across the board. There was no concern in opening here; we were confident it was going to be successful and so far it has proved to be just that.’

But what can DSG Financial Services do for dealers? Well, they are in the perfect position to support dealers at the point of sale with innovative products that really work. ‘What we look to do is to compliment any relationships that are already in place,’ explains DSG Financial Services’ sales director Mark Gow. ‘We try to help fund any dealer’s out-of-place business that existing lenders can’t through their existing relationships.

‘When we meet dealers for the first time, most are generally quite surprised about the range of different areas we can help them with, whether that is increasing finance penetration, generating extra vehicle sales through the range of our niche products, or even helping dealers spend less money on their IT expenditure.’

DSG is well placed to be partnering dealers with financial services. The company was

established in 1989 becoming one of the motor trade’s longest serving brokers, and has experienced the developments that have hit the market meaning they’re flexible and can adapt quickly to change if necessary.

‘The industry has changed enormously since we established,’ says Gow. ‘We’ve particularly seen it with technology, and over the last five or six years we’ve experienced the reduction of the number of finance options available to dealers, and that’s been good news for DSG.’ The firm relies heavily on technology, and with its experience in seeing the role of technology become more important over the last two decades, DSG has been able to capitalise on the offering of effective technology for use by dealers.

‘Technology is extremely important to us because it is the way we give dealers access to our range of niche products,’ explains Gow. ‘Technology also allows us to give what we like to to dealers. That is a commitment that we will offer complete and utter transparency to the information that is most important to them.

This is obviously finance commissions, and the customer’s monthly repayments,’ adds Gow. DSG specialises in providing niche products to

dealers that have been designed to compliment the existing products and agreements dealers might have with lenders. That means they’ve got a selection of products just waiting for you to take advantage of, ranging from Motorloan and Top Up Loan which seek to cure what’s known as ‘negative equity’, a low payment plan and personal contract purchase products which are some of the most competitively priced, a dedicated service designed to agree as many finance applications as possible, as well as products specifically designed for dealers selling prestige cars.

One of the things that makes DSG stand out from the competition is its attitude to working with you. The firm’s products and team aims to be as flexible as possible in working with any agreements dealers already have with other services. In any part of the UK, they are local and are available to offer you the help and support you need to carry out your business as effectively as possible. Be that in Scotland, or anywhere else in the UK. contact: 0844 880 0660 – england & Wales, 01698 740 100 – scotland, dsgfs.com carDealerMag.co.uk | 59

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focus on.

F&I

Welcome w

hen that customer drives away from your showroom with their shiny new purchase, it’s probably the last thought on their mind that their car might get damaged in some way in the future.

It’s probably far down your to do list as well – what with the tax bill and the work experience boy all giving you a major headache.

But it shouldn’t be. If anything, selling F&I add-ons should be as important as the actual sale of the car itself.

Naturally, this ‘protection’ is a wide and vast term covering many things. Warranties that cover all the bases are probably the first product that springs to mind, but paint, bodywork and alloy wheel protection are just as necessary and desirable to customers too. Even interior protection products to guard against nasty stains are available and something that you should be getting-on with selling – for your bottom line’s sake!

Now has never been a better time to take advantage of the lucrative opportunities F&I solutions can give you. Not only do these products help your revenue streams, but they can improve customer satisfaction and retention levels – important areas that you should be concentrating on when sales are thin on the ground.

That’s why Car Dealer has been chatting to some of the best providers of F&I products, who are all here to help you make more money and help ease that headache. Here’s what they’ve got to offer.

What’s inside?

AutoProtect

P62

Add value and make sure your customers stay your customers

Alphera

P65

Upmarket upsales which offer real advantages

Warrantywise

P66

The warranty that suits the premium car dealers too

Dealer Options

P68

Positive protection offers true peace of mind

James Batchelor Staff writer

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focus on.

F&I

The complete package W: autoprotect.net T: 0871 384 3507

w

hen it comes to F&I, there are few companies that offer such a complete package as that offered by AutoProtect.

Started in 2004, 50 per cent of the company is owned by Capricorn Ventures International – the venture capital arm of South Africa’s largest independently owned insurance company Hollard – has gone on to become a trusted name in providing motor-related insurance products and services.

When AutoProtect began trading, it specialised predominantly in offering warranties to the used car market. However, it has since invested more than £1m in IT systems creating AutoProcess – a fully compliant, web-based F&I sales logging system, that integrates with dealer CRM and IT platforms providing ‘real-time’ data on F&I, sales reporting and F&I logs for dealers – and the company has entered the corporate market covering the franchise dealer and manufacturer sector.

More than 2,500 dealers in the UK use the services of AutoProtect which also supplies products to Fiat, Alfa Romeo, Chrysler, Subaru and Isuzu, and to dealer groups such as Inchcape Park’s Motor Group Mercedes-Benz Retail, and other small to medium groups.

‘It was clear from our initial meetings with AutoProtect that they were going to be very open minded in the way they approached their work with us,’ explains David Ho, Citygate’s finance director. ‘AutoProtect’s products have been adapted to suit our requirements, their account managers have become part of the Citygate team, and their software development and IT integration has been seamless. This has provided us with a market-leading product range that our customers appreciate, in turn, generating greater loyalty to Citygate and improved customer retention and satisfaction.

‘AutoProtect’s attitude and approach to business is flexible and forward thinking. They truly believe in working in partnership and have supported us in our endeavours to be totally automated and process driven in order to facilitate selling and profit making,’ adds Ho.

Products Well, there’s a lot of them that’s for sure. They range from tyre, key, and misfuelling insurance products to financial asset protection, but perhaps what is most impressive about AutoProtect’s product range is its flexibility. For example, mechanical breakdown warranty comes in a variety of options, with optional cover for in-car entertainment and wear and tear. Recovery packages are also available and, in keeping with AutoProtect’s most successful products, the mechanical breakdown warranty can be adapted to dealers’ requirements.

AutoProtect also has a theft protection product and guarantee called Auto Theft Protect, and Service Plan which offers not only service plans but customer retention tools designed to keep dealers in contact with customers during the time they own the car.

Innovation AutoProtect is, perhaps, more renowned for their innovative, first to the market products such as

SMART. In essence it’s an insurance product that covers customers’ cars from chips, dents, scratches and scuffs for 12, 24, or 36 months and doesn’t affect their no claims bonuses. SMART Protect Plus adds alloy wheel damage to the list of coverable items.

‘Three years ago we were the first to come to the market with SMART – small motor accident repair technology,’ explains AutoProtect’s CEO David Shapiro. ‘We now have more than 50 dealer groups who have taken this product on. In reality it has become the replacement for PPP insurance, which has become unfashionable.

‘This therefore left a vacuum for SMART, and it is a very easy product to understand and sell on to the customer because it simply does what it says it does. This is also a lifestyle product which the dealer would make approximately £250 per policy, per unit, and if you take all of our dealers together the average penetration level for SMART would be 24 per cent,’ says Shapiro.

Having a broad spectrum of products and

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services available to dealers in a period of just seven years is a triumph in itself, but having successful ones is even more impressive. So how has AutoProtect achieved this?

‘It’s about being flexible,’ replies Shapiro. ‘Our products are flexible and we can stretch them to fit the dealer, but it is also about our approach with dealers. We are committed and passionate about helping them, from a garage who sells a handful of cars to a franchised BMW dealer, we treat them all the same.’

To join that impressive list of vehicle solutions is a new product that ‘supercedes all others out there,’ says Gary Lancaster, AutoProtect’s senior development manager. A bold statement you would agree, but it’s one with substance. Williams F1 team Ceramic Coat is a new innovation in the protection of vehicles’ paintwork and is a product that is all set to shake up the paint protection sector.

Designed with the latest paint technologies in mind, Ceramic Coat binds with complex polymers in the paint to provide a thickness and hardness not found in previous wax-based paint protectors. Providing the customer’s car is less than five years old, the process can be used on all exterior panels of the car, including alloy wheels, and can maintain or restore the shine that is only possible when a car is fresh from the factory. It’s

also a long-term form of protection with only washing being a maintenance stipulation, and comes with complementary interior protection.

Like the outside, this protects the interior from general wear and tear, and dealers can assure customers that the protection is hypo-allergenic based and environmentally friendly too.

The product was actually developed by NASA, and Williams were prepared to put their name against this particular paint-protection product because it worked, and AutoProtect is a licensee of the product.

‘What we’re finding is that dealers are combining the Williams F1 team Ceramic Coat, and our RTI and SMART products together at the point of sale as a complete protection programme for customers,’ explains Lancaster. ‘From the customer’s perspective, this gives them a better sale value for their vehicle in three years time.

From the dealer’s view, this presents a new profit opportunity and can be used as another retention tool, and, with the Williams name, this is the first product that is recognised by both customer and dealer.’

And you, the dealer, can use all of the Williams and AutoProtect marketing and signage in your dealership too – now that is a winning formula.

‘‘

We are committed and passionate about helping them, from a garage who sells a handful of cars to a franchised BmW dealer, we treat them all the same

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top: an autoprotect technician examines the vehicle Middle: car has been in a nasty scrape right: after autoprotect has weaved its magic the damage is gone

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For finance. For insurance.

For business growth.

Proactive support and industry leading products.

As BMW Group’s multi-brand motor nance company, we’re committed to helping our Dealer and Broker Partners grow their businesses. Offering proactive support, alongside opportunities to generate more income through additional services such as insurance products and a lead management system.

Your success is our primary motivation.

For full details on working with Alphera, call now on 01256 747 824 or visit www.alphera.co.uk

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10 16:00:11

fOCus On.

f&i

More than just finance W: alphera.co.uk T: 0870 5050 150

U

psales are not all about standard warranties. Other products like tyre insurance and GAP are just as crucial.

These can be great profit centres for dealers if sold correctly – and Alphera can help.

You’ll know them as a finance company, but they’re not just about funding deals.

Alphera also has a range of products to help boost your bottom line too. One of which is their GAP insurance policy called Alphera Shortfall that protects customers from shelling out unnecessary pounds when their vehicle is written off or stolen.

Alphera’s tyre insurance can be a welcome boost for dealers too. With the UK suffering from shoddy roads, customers want insurance like this that covers the cost of repairing or replacing damaged tyres.

But these are just two products that the company offers. ‘Alphera stands for sustained partnership,’ director Spencer Halil told Car Dealer. ‘We have one of the broadest product ranges, with the obvious products like hire purchase and lease purchase, but we also have a market-leading PCP. Our residual values are individually set, so we have a very robust approach to residual value setting, and we’re not afraid of high balances. That means we don’t have limits of £30k or £50k, because our underwriters are able to underwrite up to £150k – and even at that point if there is a proposition that is higher, our credit analysts get involved.’

Insurance is also a key strength for Alphera too. ‘We provide an ethically-based, compliant platform, which allows profit streams to be recovered and become valuable again to dealers,’ says Halil.

How does that work? ‘Well, dealers can create the initial quote with a reference number, and

then the customer can go away and conclude the sale in their own time – I still don’t know, to this day, of any independent finance provider that offers a lead-management system as clearly dealer-focused as ours.

‘Breadth of period is also an Alphera speciality,’ adds Halil. ‘Older vehicles over longer periods aren’t a taboo for us.’ And that’s not to mention Alphera constantly developing new products to best support their dealer partners. So, how has business been in the early part of 2011?

‘We’re doing very well at the moment,’ replied Halil. ‘We have had a very good start to 2011.

But I think this year is going to be tougher than last year – that’s not say last year wasn’t tough – but January was a very good month, so too was February. We’re pleased with our performance but not complacent.’

Halil’s description of January is a bit of an understatement, frankly. The first month of 2011 was Alphera’s best ever January on record; which

is quite something as 2010 was a great year for the firm. ‘We don’t expect that to be mirrored throughout the year because, for us, January is normally a slow month,’ explains Halil. ‘There is a lot of talk about low levels of customer confidence at the moment, and I am sure that there is a lot of merit to that concern. But what we’re seeing is enough dealers, selling enough at point-of-sale for us to do well. Dealers are obviously seeing the value in our offering as well because they are using us.’

spencer halil

All about adding Aston one example of alphera being successful in recent months is its relationship with aston martin. first announced in november, alphera has been developing tailor-made financial packages for aston martin customers, and it’s been going well.

‘We’re very pleased with the way the relationship is developing,’ says halil. ‘We started the ball rolling with our core products such as pcp, and we’re now looking to develop two additional products for aston

martin – a balanced payment product, and an unregulated lease purchase product.

‘We’re also looking to provide some very good packages and support for the cygnet. this car is taking the brand in a new direction, which will mean it takes us in new directions too, and we’re very excited being able to partner that product. the aston martin relationship allows us to be creative, and then those solutions become available to the whole of our network,’ says halil. carDealerMag.co.uk | 65

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fOCus On.

f&i

Premium option W: warrantywise.co.uk T: 0800 001 4997

T

here are numerous warranties out there just waiting for you to snap up and offer to your customers. But plunging in at the deep end and not knowing what warranties are the best for you could damage you reputation badly.

Your pocket will be tempting you to go for the cheapest, no frills cover, but your common sense will be telling you to opt for the higher quality warranty that comes at a greater price. This is where Warrantywise is positioned.

Their warranty doesn’t come with betterment causes or mileage restrictions, but does come with an integrated margin monitor,

recovery, car hire and travel expenses covered, and cover for premature wear, airbags, and sat nav systems are available – all quality elements of a warranty designed to make your customers happy and, most importantly, feel safe that they’re covered.

Lawrence Whittaker, managing director of Warrantywise, is of the view that the quality end of the warranty market is the place to be.

The company offers cover levels equal to that which are available to the punter, meaning that you can choose a cover level that has no claims limits, and no policy excess.

Uniquely all makes and models including imports are covered too.

‘Some of the most prestigious car dealerships in the country use Warrantywise for their warranty needs,’ explains Whittaker. ‘This includes Tom Hartley and Graypaul Ferrari.’ That’s not mentioning Sytner, Inchcape, and Guy Salmon.

The firm is also doing well in 2011. Sales were up 36 per cent in January compared to the same month in 2010, showing that dealers are more than happy to select a quality warranty rather than going for the cheapest.

And don’t forget Quentin Willson. The motoring journalist designed the Warrantywise product, meaning you not only get a clever warranty, but point-of-sale merchandise fronted by Willson can be used in your dealership too.

‘‘

some of the most prestigious car dealerships in the country use Warrantywise for their warranty needs. this includes tom hartley and graypaul ferrari.

66 | carDealerMag.co.uk

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CarDealer.Club free legal advice worth £199 discounts from key industry suppliers and a subscription to Car dealer

all fOr Just £25 a Year What is Car dealer CluB? it is car dealer magazine’s unique offering that gives motor traders of all sizes access to some brilliant benefits. the biggest one of all is access to the country’s top motor trade lawyers, 24 hours a day, for free legal advice connected with your business. someone wants to return a troublesome car? head gasket gone on a used car you sold? if you want to know where you stand and how to deal with it, our lawyers can help. the service usually costs £199 per year, but we’ve managed to arrange an exclusive offer. When you take out a subscription to car dealer magazine for the special price of £24.99 you’ll be covered! there’s no strings attached.

What else Will i get?

We’ve negotiated some tantalising discounts from motor trade suppliers so you can enjoy being part of a select band of car

dealers. When you join you’ll be given a club membership number and details of how to get access to these unique offers. so far we’ve added some corkers – and are negotiating with many more suppliers all the time. i get Car dealer magaZine, am i a memBer? no. this special offer only applies to new subscribers so if you haven’t renewed your subscription then you need to do so online to gain access to this very special offer. hOW dO i sign up? signing up is simple. Just type bit.ly/dealerclub into a web browser and you’ll be taken straight to the page on our website where you can sign up. there you can pay by credit or debit card. alternatively fill in the panel below and send us a cheque for £24.99 made payable to blackball media ltd.

Car dealer CluB suBsCriptiOn fOrm Your Name: .........................................................................................................................................................................

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Car dealer CluB Offer, BlaCkBall media 2a ChurCh rOad gOspOrt, hants pO12 2lB Or you can pay for your subscription online – simply fill in your details at bit.ly/dealerclub – and you can pay by credit or debit card. Once we have received payment you’ll be sent a Car Dealer Club membership pack with the details of how to take advantage of all the offers.

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fOCus On.

f&i

Forever yours W: dealeroption.co.uk T: 01367 246011

w

ouldn’t it be wonderful if products just lasted forever? Obviously, not cars, because we would all be out of a job, but there is one product that will last forever that’s associated with them.

‘It’s called Platinum Protection and it’s the core product from Dealer Option,’ says Dealer Option director, Sebastian Belardo. Put simply, Platinum Protection is a cosmetically-enhancing paint and fabric protection process. Suitable for any vehicle inside and out, the process will protect a vehicle from the environment and all-round causes of paintwork damage.

‘Should a customer go into a dealership and buy a brand new car,’ says Belardo, ‘the maintenance programme is down to the customer. With Platinum Protection, the

customer needs to do nothing to the car to keep up the protection. All they have to do is wash it.’

However, there is nothing new about paint protection. Belardo has realised this too, so Paint Protection comes with a full, money-back transferable lifetime guarantee.

‘Platinum Protection is transferable from car to car,’ explains Belardo. ‘If the customer was to return to the dealership in three years time and buy a new car, the dealer sticks another guarantee on to the new car – it’s as simple as that.’

Belardo can guarantee this because of the latest ceramic polymer protection technology.

That’s why if the customer is not happy, Dealer Option will replace the treatment or give a full refund to the customer, thereby making dealers’

lives easier.

Dealers are also trained online with the product, and have to register the protection while the customer is sitting in front of them at the point of sale – peace of mind for the customer who’s just spent £200-400 on it.

‘We improve dealers’ profitability, and we’re up to three times cheaper than our competitors.

They get an appropriate account management team, too,’ adds Belardo.

platinumprotection ...inside.... ..and out!

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Tel:01367 246011 Email:info@dealeroption.co.uk Web:www.dealeroption.co.uk 68 | carDealerMag.co.uk

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Datafile COntents.

Right click 71 Auctions 72 Shares 73 The Statistics 74 SMMT sales figures 75

Alex goy 76 Suppliers guide 77 James Litton 78 Trader directory 79 Sub-Prime Time 82

Advice n Data n Analysis n Facts n Figures n Comment

talking point: the new 11 reg Does a new reg still excite buyers like it used to? We ask those in the know tOnY WhitehOrn hYundai mOtOr uk, md

When my wife goes shopping she always gives a reason as to why she needs what she has bought, actually we are all the same – we need a good enough excuse/reason to justify our purchase.

Despite these hard economic climes the onset of a new 11-reg is a ‘good enough reason’ to buy a new car. People who are visiting our showrooms at the moment are serious purchasers and the March plate change is generating its usual high level of interest.

mark sQuires

Benfield mOtOrs, managing direCtOr

The plate change obviously doesn’t have the pull it once had but it helps focus buyers on the new car market during the key selling periods. It’s still an interruption, however, to a flowing supply of cars from factories. Most customers still defer until the plate change month within the quarter.

ian plummer renault uk, COmmerCial OperatiOns direCtOr

In short, no I don’t think it excites customers the way it used to. It’s noticeable that people do much less early buying – rather than purchase in advance in order to take delivery on the first day of the month, customers seem to wake up to the new reg opportunity actually after March 1 or September 1 and then come in to order. The customer is however more and more savvy and so is very aware of the preferential impact on values to purchase a new vehicle shortly after the registration change, so it seems to be more of a rational investmentrelated decision as opposed to an emotional one.

peter VardY Chief eXeCutiVe, peter VardY

The order rate has been much lower than anticipated and the manufacturers have, in some cases, already taken action, but the rest will soon follow I am sure. We either push on aggressively with retail consumer offers or I think we’ll be heading for large scale pre-reg at the end of the quarter which I think is a big risk and doesn’t help our cash position.

dOn BrOugh

CeO, first respOnse finanCe

Just recently I came across the phrase that ‘frugality is the new cool’ which I suppose is a different way of saying we’re moving away from buying new and will inevitably see a marked move towards nearly new and used for the medium term. However, even if it’s chic to be cheap today, we’ll see an upsurge in new car buying in a couple of years’ time.

marC raVen

CitrOen uk, COmmuniCatiOns direCtOr

A resounding yes, there is still a sizeable majority of customers who love (or would love) to drive home in a gleaming new car with the brand new number plate proudly displayed front and rear. It’s like a badge of success. You can’t beat the smell of a new car, the lustre of unblemished new paint and the kudos of a brand new model.

A new car on a new number plate is still one of the top desires of every motor owning consumer in the land.

paul eVeritt

smmt, Chief eXeCutiVe

New number plates always generate a peak in activity in the car market and March 2011 will be no different. There’s no doubt that this will be a tough year for consumers and for industry so we expect registrations to be slightly down on last year’s, although it will still account for nearly 20 per cent of the full-year total.

gareth Williams

hatfield, managing direCtOr

Customers are still excited by the new number plate, but then so are manufacturers. The March market is so significant in terms of profitability for all concerned that marketing, consumer offers and all sales incentives reach a peak to coincide with the plate change, so potential customers are bombarded with good reasons to change.

darren Williams

grant seat, managing direCtOr

Although the March and September changes don’t quite have the gravitas of the August plate change (I’m clearly showing my age now!) customers are still very focused on the new plates and while I don’t believe it drives incremental business it still focuses new car activity around two fixed points of the year from both a customer and manufacturer perspective.

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e

right CliCk.

..in association with GForces

Online sales is the word of mouse GForces’ Tim Smith says car buyers are ready to buy cars online, but asks is your website?

I

n the UK alone 42m consumers are now shopping online, a substantial increase on last year’s statistics. This year dealerships should bring their sales focus off the forecourt and into their digital dealerships to captivate and engage with today’s car buyer.

A staggering 70 per cent of the Top 200 dealers are missing out on the convenience and accessibility of an ecommerce platform. Lifestyle Europe is even taking it one step further and piloting the ability to buy cars online. So with consumers spending more time and money online today why are so many dealers missing out on this growing market?

E-retail sales have seen a 71 per cent growth in the past two years and this is only set to rise.

Statistics such as this show a blatant demand from customers. The internet helps identify 65 per cent of potential car dealer consumers, so if this is the channel consumers are using then car dealers need to respond via the same channel.

Ecommerce is a great way for dealers to grow a community, entice customers to return and build a loyal customer base.

Like the perfect score to a film, good customer experience is unobtrusive and transparent

because it complements the experience. Dealers have already done the hard part and sold the vehicle. The next step is to continue building the customer relationship ensuring that they return for their service, MOT and wiper blades. But that’s just the start of it. The opportunities are endless, retail sales are set to grow a further 36 per cent over the next 18 months alone.

Successful E-businesses like eBay and Amazon are built to generate sales, guiding customers through a seamless site to purchase. Recognising a reduction in delivery and labour costs and today’s buyer behaviour, these businesses understand that with so many advances in technology and increased access to the internet, buying online is easier than owning a credit card or having a PayPal account.

According to a recent survey by CapGemini, more than half of the 8,000 respondents see practical items likely to wear out as those they are most likely to purchase online. Around 35 per cent of respondents would expect to see some sort of price discount, while 30 per cent believe the transaction would be faster and easier.

Lifestyle Europe may be the UK’s first dealership to pilot the ability to purchase cars online by the click of a mouse. However, a parts and accessories

online shop can also be used to market your whole aftersales facility by featuring service offers, winter checks or even offering to professionally fit items purchased from your website.

The benefits, of course, are to increase footfall to your dealership which can result in increased revenue not only to the aftersales departments but also to the sales departments.

Bartlett Seat generated nine per cent more traffic to its website than car portal sites such as Auto Trader and sold cars out of their geographical location all thanks to a link to their dealership site from their online shop.

It’s important dealers remember these technology advances have punctuated the evolution of how consumers search and purchase goods and services. Success is inevitable and demand is already here. Dealers CAN build a simple, affordable and even pre-populated 24/7 online parts and accessories web operation to support their digital dealership.

The UK’s leading dealer groups will implement this as the digital retail market grows, delivering vast amounts of extra revenue to the groups therefore concluding ecommerce as an essential online asset. Other dealers should be listening closely because the word of mouse is ecommerce.

‘It’s important dealers remember these technology advances.’

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auCtiOns.

vertu adds hyundai dealership to its portfolio bit.ly/hyundaidealer

Henstock

auction stations

Car colour can clearly cloud customer’s choices

A

nyone buying or selling used cars quickly learns to appreciate the importance of colour and the effect it can have on price; like the subtle difference between metallic blue – very saleable – and that trade favourite ‘doom blue’, which never appears on a colour chart but somehow makes its way on to the forecourt for a 60- or 90-day-stay, depending on your stocking policy.

Green was always rumoured to be unlucky, so how do you explain British Racing Green? Black is supposed to be funereal, but on a racing model looks menacing while on a luxury saloon looks stately.

Cars look great when in the right colour and are more saleable too. If you count the shades according to the manufacturers there are more than 2,000 colours although it would take an experienced salesman to know the difference between Auritius Blue, Athena Blue, Polar Blue and Jazz Blue!

Despite that, most motorists are fairly conservative; silver, blue, grey and black are the most popular by volume at BCA. When looking at nearly-new models, the same four colours dominate. Black (29.4 per cent) proving the biggest seller ahead of silver (28.1 per cent). The same for ex-fleet and lease cars – black (30 per cent) is the biggest seller here too.

Things change when looking at dealer part-exchange stock sold by BCA. Silver moves into first with nearly 31 per cent, ahead of black (16.6 per cent) and blue (23.3 per cent). When it comes to price performance white is currently the most desirable colour. When looking at cars from all sources, white cars average 103 per cent of CAP Clean, nearly four points ahead of grey and black. A lot of this will be about supply and demand – the current highimpact white finishes are popular and relatively limited, selling in the low hundreds, compared to the many thousands of black, grey and silver cars sold. Another surprise is that blue is actually just below red and orange in terms of CAP performance at around 97 per cent.

There’s an element of the self-fulfilling prophecy – motorists can, and do, choose between different colours on similar models when buying used cars. It is a major issue for anyone operating in the used car market... the colour of money indeed.

‘Black is supposed to be funereal, but on a racing model looks menacing’

Who is Simon Henstock?

simon is uk network operations director for bca. find out more at bca-europe.com or call 0845 600 6644.

Full steam ahead for 4x4 pick-up market Auction house tells of sharp rise in demand from trade and private alike for good-quality used vehicles

A

uction firm BCA has reported a significant increase in the value of 4×4 pick-ups. A special selection of 20 4×4 pick-ups were sold at BCA Blackbushe on behalf of the UK Car Group in late January and generated a huge amount of interest with trade buyers, small business end-users and private buyers all competing.

Duncan Ward, BCA general manager for commercial vehicles, said: ‘Well-specified 4×4s are in demand and examples with leather, satellite navigation, chrome trim, alloy wheels, metallic paint and popular extras like searchlight bars are making exceptional money.

‘Buyers are not so concerned about the age and mileage, providing vehicles are in good, clean condition. Presentation remains important, however, and damaged examples need to be sensibly valued to generate interest.’

The auction house has said that buyers don’t even

G3 expands its team G3 remarketing is growing from strength to strength after it’s been announced it has appointed two new staff. Rachel Hirst has joined the team as buyer-relationship manager and Ben Smith as account manager. Hirst joins after a number of successful years within HSBC and O2 where she held senior roles developing and maintaining key corporate relationships.

‘When I learnt of the opportunity I jumped at the chance, the idea of joining such a progressive and fast-growing business was a huge draw. Over the next few months we have a number of key milestones within our business and I am excited to be a part of it.’

Smith is set to take on a number of key new accounts. G3 remarketing director, Matt Dale, said: ‘The time is right for us to add to our internal and external customer relationship team.’

have the option of down-speccing to save costs, because base-models are in even shorter supply and values are rising as a consequence.

There is also plenty of demand for lateregistered Land Rovers and a limited 60th Anniversary 110 Defender was sold for £20,000 in the same sale.

‘The 4×4 double-cab sector is reaching a wider audience than previously, with caravanners and rural pursuits enthusiasts enjoying the pulling power and surefootedness these vehicles offer, as well as the extra space,’ he said.

‘However, buyer interest has risen sharply since the weather deteriorated in November and December. There are many self-employed owner operators whose businesses are completely dependent on being mobile every day. When their traditional vehicle is stuck at base defeated by the snow they inevitably start looking at a 4×4 as a logical alternative.’

New plate is good news for dealers the march plate change is good news for the used car market – so says auction house bca. it’s news dealers will want to hear as a shortage of quality used cars has been affecting the market for the past few months. ‘new car sales for the march plate change may not be as busy as previous years, but there will still be plenty of pull-through of part-exchanged motors for the used car market,’ explains bca’s tim naylor. ‘at this time of year we have a surge of fresh stock at our auctions which means an even better range of good quality used vehicles at great prices.’

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shares.

..in association with ASE-global.com

pendragon boosted by takeover talks Rumours helped to raise Pendragon’s price and spirits says ASE’s Mike Jones

T

he newswires for motor retailers over the past month have been dominated by the UK motor industry’s largest retailer, Pendragon. In the middle of February rumours broke of a potential takeover of Pendragon by Lookers.

At this point in time the share price was languishing at 18p having given up most of the gains made during December and looking like heading downwards once more. Immediately as the story broke the price shot up 5p providing a healthy return for anyone who picked up on the rumour and returning the stock to a price close to that of 12 months ago.

After the initial flurry of activity the rumour has not gained any traction, with most commentators regarding the potential of any wholesale takeover as unlikely. Lookers has worked hard to differentiate itself in the eyes of the market through emphasis on the strength of its aftersales business and has seen how Pendragon got itself into difficulty through merely trying to grow.

The likelihood of someone coming along and purchasing the whole of Pendragon remains remote as a result of its size, complexity and debt burden. With changes to block exemption on the horizon a tie-up between two of the UK’s largest players would be unlikely to be welcomed by the manufacturers and importers. What looks significantly more likely is a continuation of the current pattern of dealership sales, with the

potential for one or two of the significant car sales divisions being sold off.

Following hot on the heels of the takeover rumour was the announcement of the full year results for Pendragon. While the headline figures were positive (certainly in comparison to the previous year) it will be interesting to see how they compare to the Lookers results which were announced on March 9 (after this mag printed).

In spite of Pendragon continuing its policy of selling sites the debt burden actually increased during the year leaving the business still highly geared. Company management put this down to an increase in new and used vehicle stocks. However there remains a general concern over the level of debt on the balance sheet and the prospects for a successful refinancing in the future.

Looking behind the numbers of the Pendragon announcement it was interesting to see the words emulating the focus that Lookers has been bringing to its press releases for a number of years. Significant emphasis was placed on the profitability gained from used vehicle sales and aftersales alongside details of a number of continued growth initiatives in these areas. This marks a significant change as the listed retailers seek to convince the market that they can continue to prosper even in a declining new vehicle market.

For the remaining listed stocks it was a relatively quiet month with the majority of shares within a whisker of their opening price for the year, awaiting the announcement of full-year earnings. It has also been a quiet month on the acquisition front among the listed stocks.

It is unlikely that we will see any significant movement in share prices until the market gains an indication of profitability for the first quarter of 2011. While the registration statistics will no doubt show falls in comparison to 2010 if the listed operators can post enhanced earnings through concentrating on their major profit streams then prices may rise as people view the businesses perfectly placed to capitalise on the country’s emergence from the current recession.

Who is Mike Jones? he‘s executive chairman of ase global. if you want to talk to him about his column call 0161 493 1930

QuestiOn: What costs just £25 but lasts 12 months? ansWer:

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get free legal advice worth £199, discounts from key industry suppliers and a subscription to Car dealer magazine.

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DATA FILE.

Thestatistics Used Cars n Top 10 Searches n SMMT Sales Data

The most searched-for cars LAst month on..

Compucars 1 BMW 3 Series 2 Mercedes C Class 3 Ford Focus 4 VW Golf 5 BMW 5 Series 6 Mercedes E Class 7 Land Rover Range Rover 8 BMW 1 Series 9 Vauxhall Astra 10 Audi A4

Motoring.co.uk 1 Vauxhall Corsa 2 Mazda 2 3 Ford Fiesta 4 Vauxhall Astra 5 Ford Focus 6 Renault Clio 7 Seat Ibiza 8 Citroen C1 9 VW Golf 10 VW Polo

ContractHireAndLeasing.com 1 BMW 3 Series 2 Audi A3 3 Audi A5 4 Volkswagen Golf 5 Mercedes E Class 6 Audi A4 7 Mercedes C Class 8 Nissan Qashqai 9 BMW 5 Series 10 BMW 1 Series

Car sales improve but the numbers are down F

ebruary’s new car registration figures are part of ‘an improving trend’ says SMMT chief executive Paul Everitt.

Despite the number of registrations being 7.7 per cent down and February representing the eighth consecutive month where new car registrations have fallen, the actual number of cars sold was six per cent above SMMT’s forecasted figures.

Everitt said: ‘The UK motor industry is looking for a strong March market to help boost confidence and kick start demand for the new 11-plate. February new car registrations were better than expected and while below 2010 levels, they were significantly ahead of 2009 and on an improving trend.’

However, while Everitt acknowledged February’s results were positive, the chief exec warned events in March will be critical to the market, consumers’ attitudes, and registration figures in the future.

‘This month’s Budget will be

Decline of 7.7 per cent recorded in February but the outlook is getting better critical in determining consumer and business confidence and the ongoing stability of the market.

‘We’re looking for certainty on motoring taxes, a freeze on fuel duty and measures that support business investment and access to finance and credit.’

Over the past three and six month periods the market has fallen by approximately 13 per cent, although over the past 12 months was down just 1.7 per cent.

February’s figures also revealed that demand for the mini and supermini segment cars, boosted by

‘‘

scrappage in 2010, continued to fall.

However registrations of executive, luxury saloon, sports cars and MPVs showed double digit growth in the month, and fleet volumes recovered representing a growth of 8.6 per cent.

Demand by consumers for diesel cars rose by 8.9 per cent in February and their market share was once again over the 50 per cent figure in the month.

The VW Golf was the best-seller in February with 2,709 sales, with the Ford Focus remaining at number one in yearto-date sales with 10,065 units. See story above right.

The UK motor industry is looking for a strong March market to help boost confidence.

Warmer weather will see convertible prices rocket WARMER weather in the coming months will see residual values for convertibles rise significantly, says Glass’s. According to data from the vehicle valuations experts, convertibles typically retain more of their original value than other segments.

General market models such as the Peugeot 207CC

or Mazda MX-5, and premium models like the BMW 3-Series or Audi A4 hold onto an average of 42 per cent and 45 per cent respectively after three years. Demand from customers is expected to be high this year, so Glass’s is warning dealers to bear that in mind that trade prices are set to go into a slow and steady decline after April.

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vW Golf surprise Feb sales winner

THE Volkswagen Golf was the surprise winner in February’s sales tables, SMMT figures reveal.

Sales of VW’s mid-sized hatchback topped more than 2,700 – up from fifth place in January. The Corsa followed in second with 2,617 sales, while

January’s winner, the Ford Focus, dropped to third registering 2,483 cars. The Ford Fiesta fell to fourth place in February with 2,404, while Vauxhall’s Astra amounted 2,036 cars, and the Insignia came in sixth place with 1,842 cars registered. It was a top month

smmt sales data February/year to date

for Vauxhall as the Zafira made a surprising entry at number seven with 1,705 sales, the Volkswagen Polo at eight with 1,570, and the Nissan Qashqai in ninth with 1,367.

The Vauxhall Meriva rounded off the top 10 with 1,367 cars registered.

nissan FeB 37.32%

kia FeB -44.46% figures supplied by smmt

February Marque

abarth alfa romeo aston martin audi bentley bmW cadillac chevrolet chrysler citroen corvette daihatsu daimler dodge fiat ford honda hummer hyundai infiniti Jaguar Jeep kia land rover lexus lotus mazda mercedes-benz mg mini mitsubishi nissan perodua peugeot porsche proton renault saab seat skoda smart ssangyong subaru suzuki toyota vauxhall volkswagen volvo other british other imports total

2011

35 284 39 3,783 13 3,577 0 310 18 2,499 0 0 0 0 1,343 7,542 2,049 0 2,032 15 227 44 1,563 651 73 59 1,282 2,661 8 1,173 311 2,881 18 3,052 110 25 1,807 160 820 1,690 170 0 83 820 1,956 9,812 7,569 740 64 56 63,424

% market share

2010

0.06 0.45 0.06 5.96 0.02 5.64 0.00 0.49 0.03 3.94 0.00 0.00 0.00 0.00 2.12 11.89 3.23 0.00 3.20 0.02 0.36 0.07 2.46 1.03 0.12 0.09 2.02 4.20 0.01 1.85 0.49 4.54 0.03 4.81 0.17 0.04 2.85 0.25 1.29 2.66 0.27 0.00 0.13 1.29 3.08 15.47 11.93 1.17 0.10 0.09

33 224 27 2,957 26 3,141 3 500 21 2,701 0 27 0 30 1,752 9,915 1,663 0 3,007 1 266 90 3,366 804 91 18 1,587 1,923 8 973 396 2,098 29 3,533 106 50 3,559 84 904 1,574 336 18 69 778 3,439 7,950 7,132 1,378 64 35 68,686

Year to date (YTD) % market share

2011

%market share

2010

%market share

113 879 94 12,085 88 12,303 0 1,249 74 7,625 0 2 0 0 3,831 27,199 6,006 0 6,006 46 1,083 124 4,663 3,181 542 78 3,471 7,856 10 2,787 1,071 8,055 49 9,894 470 59 5,674 612 3,220 4,751 373 3 264 1,889 7,513 25,123 18,610 2,856 178 176 192,235

0.06 0.46 0.05 6.29 0.05 6.40 0.00 0.65 0.04 3.97 0.00 0.00 0.00 0.00 1.99 14.15 3.12 0.00 3.12 0.02 0.56 0.06 2.43 1.65 0.28 0.04 1.81 4.09 0.01 1.45 0.56 4.19 0.03 5.15 0.24 0.03 2.95 0.32 1.68 2.47 0.19 0.00 0.14 0.98 3.91 13.07 9.68 1.49 0.09 0.09

101 598 79 10,849 107 8,359 6 1,612 139 7,650 0 49 0 51 5,724 32,043 5,994 0 10,279 13 1,307 260 8,396 3,322 735 44 4,449 6,094 30 3,108 938 7,851 86 11,912 566 117 9,402 212 3,196 4,428 760 31 287 1,839 10,785 23,953 22,099 4,024 161 120 214,165

0.05 0.28 0.04 5.07 0.05 3.90 0.00 0.75 0.06 3.57 0.00 0.02 0.00 0.02 2.67 14.96 2.80 0.00 4.80 0.01 0.61 0.12 3.92 1.55 0.34 0.02 2.08 2.85 0.01 1.45 0.44 3.67 0.04 5.56 0.26 0.05 4.39 0.10 1.49 2.07 0.35 0.01 0.13 0.86 5.04 11.18 10.32 1.88 0.08 0.06

% change

0.05 0.33 0.04 4.31 0.04 4.57 0.00 0.73 0.03 3.93 0.00 0.04 0.00 0.04 2.55 14.44 2.42 0.00 4.38 0.00 0.39 0.13 4.90 1.17 0.13 0.03 2.31 2.80 0.01 1.42 0.58 3.05 0.04 5.14 0.15 0.07 5.18 0.12 1.32 2.29 0.49 0.03 0.10 1.13 5.01 11.57 10.38 2.01 0.09 0.05

6.06 26.79 44.44 27.93 -50.00 13.88 -100.00 -38.00 -14.29 -7.48 0.00 -100.00 0.00 -100.00 -23.34 -23.93 23.21 0.00 -32.42 1,400.00 -14.66 -51.11 -53.57 -19.03 -19.78 227.78 -19.22 38.38 0.00 20.55 -21.46 37.32 -37.93 -13.61 3.77 -50.00 -49.23 90.48 -9.29 7.37 -49.40 -100.00 20.29 5.40 -43.12 23.42 6.13 -46.30 0.00 60.00 -7.66

% change

11.88 46.99 18.99 11.39 -17.76 47.18 -100.00 -22.52 -46.76 -0.33 0.00 -95.92 0.00 -100.00 -33.07 -15.12 0.20 0.00 -41.57 253.85 -17.14 -52.31 -44.46 -4.24 -26.26 77.27 -21.98 28.91 -66.67 -10.33 14.18 2.60 -43.02 -16.94 -16.96 -49.57 -39.65 188.68 0.75 7.29 -50.92 -90.32 -8.01 2.72 -30.34 4.88 -15.79 -29.03 10.56 46.67 -10.24

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data file.

Alex Goy

all torQue

Dealer training day taught me a lot but confused too

A

few weeks ago I attended a Ford Dealer training day. I was genuinely interested at the level of training on offer because, like any customer, I hoped there was plenty.

The car I was there to see was the allnew Ford Focus. I got to drive one of the first UK cars, too (odd steering, buttery clutch, small up front). The dealers there got to twin test a Titanium spec Focus back to back with an ‘S’ spec Golf. Hardly a fair match, is it? I think they realised as much.

We were told how all the tech works in enough detail to avoid confusion, but still I left with a few questions.

However, that may just be my fault for thinking too slowly. And, fact fans, I did manage to find out that the new Focus’ stop/start system will run on the main battery – not an extra one like the last gen’s Econetic model.

We were sat down to look at the car’s design which was explained to us ‘on a dealer level’ apparently. Though our teacher (for want of a better word) did use accurate design terminology, the whole thing felt a little dumbed down.

In theory a massive training day is a great way to teach dealers about their new product. In reality it was a great lesson in how to be patronised. Why? Every room I was in I felt as though I was being spoken down to. Everything was spelt out in the simplest terms – not ideal when your job is to know the product inside out. There were more than a few little points to nitpick – but I shan’t go too in-depth.

One thing, however, will forever confuse me. This is the launch of the newest version of one of the most successful products Ford has ever launched. Ever. It’s full of tech that most manufacturers won’t add to their cars unless you spend loads of money. It has more standard gear than a BMW 7-Series, too.

But over the entire day that’s the only competitor comparison I saw. Well, aside from an unfairly specced Golf. Surely you know that the Astra and Golf don’t have lots of the Focus’ toys. But which ones do they have? And if you don’t know that, why should your customers stay and listen to you? There’s a chap down the road with a competitor and you could save them a journey...

‘If you don’t know that, why should your customers stay and listen to you?’

Who is Alex Goy?

he‘s a motoring journalist with a lot to say. he also produces a brilliant podcast. check it out by typing bit.ly/alexgoy into a browser

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THE Orlando sees Chevrolet enter a new market in the UK. It’s an impressive step for the brand and is a competent car on the road. Some of the interior materials used aren’t of the highest quality, but the overall fit and finish of the car is far better than Chevys of old.

We tried both the high-powered 2.0-litre diesel engine which produces 163bhp (there’s a lower powered 130bhp option too) and also the 140bhp 1.8-litre petrol. The diesel is the pick of the two. It’s refined, quiet and with the automatic gearbox, very smooth to boot – it’s pretty nippy for the size of the car too.

W: hugofox.com T: 01635 291271 E: team@hugofox.com Info: This up-and-coming new kid on the block offers 6 months advertising (unlimited number of vehicles) for £49. Essential.

Price: Price: £20,395, tested Issue 34

W: drymotive.com T: 0845 8540057 E: sales@drymotive.co.uk Info: Suppliers of waterless car cleaning products that are quick and easy to use and produce an amazing quality finish.

W: autoklean.co.uk T: 0845 408 2975 E: dave@autoklean.co.uk Info: Competitive pricing, a service made to your requirement and all chemicals and equipment to carry out the best job.

Insurance

Auctions

Key Tags

Vehicle Remarketing

Automotive CRM

Think Insurance

HBC

I B Scott

mfldirect.co.uk

Contact Advantage Limited

Finance

Advertise Here

Warranties

mini test: Citroen C4

First Response

Your company name

WMS

Car dealer says HHHHH

W: think-ins.co.uk T: 0844 573 2850 E: enquiries@think-ins.co.uk Info: Trade insurance experts. Road risks and/or combined. Instalments.

10% new client discount. Liabilities.

Up to 75% bonus discount.

W: frfl.co.uk T: 0115 946 6370 E: Visit bit.ly/firstresponse Info: We always encourage our returning customers to visit the same dealer for their next car leading to Many Happy Returns!

W: hbc.co.uk T: 01268 696444 E: info@hbc.co.uk Info: The safest hands in salvage, HBC are prompt & efficient and operate in accordance with current industry guidelines.

W: Your website address T: 023 9252 2434 (that’s us!)

E: adverts@cardealermag.co.uk Info: You’re reading this and so could thousands of dealers too! A slot like this is £49 per month or £29 per month if booked for the year.

W: keytags.co.uk T: 0870 2406359 E: sales.ibscott@btconnect.com Info: Plastic key tags that can be used with an ordinary Biro!

Supplied with metal rings or plastic ties.

W: wmsgroupuk.com T: 0844 477 4909 E: sales@wmsgroupuk.com Info: Experience, expertise, leadership and innovation. The nation’s favourite. The dealer’s preferred partner.

Finance

These Listings Work

Online Advertising

DSG Finance

More Sales For You

Netcars.com

W: mfldirect.co.uk T: 0870 6000 288 E: sales@mfldirect.co.uk Info: For the largest selection of low mileage, single owner, dealer maintained vehicles available to the UK trade see mfldirect.co.uk

The 2.0-litre 150 HDi we drove is the most powerful unit on offer. While it’s quite brisk, it’s also frugal - motorway fiends can expect to see 68.9mpg.

Inside it looks and feels sturdy. The Exclusiv trim is the one to go for – there are shinier plastics and more toys. It feels well made – everything’s screwed together properly. So if your customer’s in the C4’s target market it’ll do rather nicely then. If not... they’ll probably end up buying a Ford Focus instead.

W: itsabsolutelyfree.co.uk T: 0844 880 0660 E: absolutely@dsgfs.com Info: Give your customers an improved online experience by presenting finance options that they can configure themselves.

W: Your website address T: 023 9252 2434 (that’s us!)

E: adverts@cardealermag.co.uk Info: The Suppliers Guide helps dealers find the companies they need to help them improve their business. Make sure you’re here.

Finance

Warranties

These Listings Work

Advertise Here

Black Horse

Car Care Plan

More Sales For You

Your company name

W: blackhorse.co.uk/Motor T: 02921 386338 E: michael.mcpartlin@blackhorse.co.uk Info: We’re the specialists in finance, offering vehicle finance at point of sale though our network of more than 7,000 dealers.

W: carcareplan.co.uk T: 0844 573 7591 E: salesinfo@carcareplan.co.uk Info: Choose the market leading supplier of vehicle warranty and GAP insurance – 1m customers every year can’t be wrong!

Getting your company featured here is more affordable than you imagine. Here’s why

W: netcars.com T: 0800 138 9135 E: info@netcars.com Info: Only pay for enquiries with the UK’s fastest growing car sales website.

Price: Price: £21,495, tested Issue 34

W: Your website address T: 023 9252 2434 (that’s us!)

E: adverts@cardealermag.co.uk Info: The Suppliers Guide helps dealers find the companies they need to help them improve their business. Make sure you’re here.

W: Your website address T: 023 9252 2434 (that’s us!)

E: adverts@cardealermag.co.uk Info: You’re reading this and so could thousands of dealers too! A slot like this is £49 per month or £29 per month if booked for the year.

Cheap Advertising It Really Works

W: Your website address T: 023 9252 2434 (that’s us!)

E: adverts@cardealermag.co.uk Info: Making sure you’re in front of dealers when they need your services is vital. And for £29 per month can you afford to miss out?

Prices for 12-month listings: £29 per month.

Single months are £49 per month

Prices exclude VAT. Adverts are invoiced after it has been included in the magazine. 12-month bookings are payable up front.

CarDealerIss37.indd 77

W: contact-advantage.com T: 08452 26 26 50 E: info@contact-advantage.com Info: Use Contact Advantage to drive efficiencies, enhance service, increase profitability and improve customer retention.

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data file.

James Litton traDer tales

It’s not a legal obligation, but I have an ethical one

I

think the recent signing of legal whizz Lucy is a great coup for Car Dealer. As proven in Big Mike’s column last month, we are frequently bombarded with legal challenges as a result of selling cars.

This is nothing new – cars are mechanical items and while you rarely see the rust or engine failures of 30 years ago, we are now facing electrical issues that would make the guys at Apple cry. Couple this with the litigious nature of our culture today and ‘how to get money back’ type guides all over the internet and it often makes you wonder why we bother at all.

However, like Big Mike, I am a proper dealer. I do not fear the law. When I have an issue with a car I fix it. Simple. If the car is out of the warranty period or the claim is for something which is deemed wear and tear, I make a contribution. I don’t have to, but whether or not I have a legal obligation to the car, I still have an ethical one.

I have yet to fall out with any of the hundreds of customers we have sold cars to in just over three years. This has to do with the way we prepare cars as much as anything.

When I signed off my first approved used car check as a sales manager for BMW, there were a number of advisory items. ‘Do them,’ I said to the workshop controller. ‘Crikey, the last bloke would have left them all,’ he replied. I could never understand this. Why mortgage the future for the sake of a few quid today?

In some perverse way I welcome problems – albeit the small and cheap to repair ones – as it gives me a chance to demonstrate how competent and professional we are. It may seem like crappy corporate speak but there is no greater opportunity for a customer to become an ‘advocate’ of the business than when you have demonstrated effective problem management.

There are times when my solutions do not meet the expectations of the customer. I can’t give money back at the first sign of trouble. I cannot cover every item on a car with 80k which costs just £3k. In the same way that the law is designed to protect consumers, it is also there to protect us as dealers.

‘I have yet to fall out with any of the hundreds of customers we have sold cars to.’

Traderdire alfa romeo

alfa romeo

aston Martin

sturgess alfa romeo

Benfield alfa romeo

aston Martin

aston Martin

audi

audi

hWM aston Martin

Wimbledon carriage company limited

Walton & epsom audi

John crisp 07885 211872

mark loughnane 01932 220404 07739 519306

BMW

BMW

Bentley

Williams rochdale

vines group

harwoods

Bentley

citroen

Daihatsu

Jack Barclay Bentley

Marlborough

ferdi khab ferdik@marlborough.uk.com 020 8225 5840 07949 219 830

stephen barnard 0208 504 0017

Daihatsu

Ferrari

Ferrari

proven Daihatsu

hr owen Ferrari

scott allen 0116 275 8800 scottallen@ sturgesscars.co.uk n buying used alfa romeos up to five years old

paul spires paul.spires@hwm.co.uk 01932 240611 07850 326755

craig fenlon 01706 717700 07808 092110

derek bennett 020 7629 7444 07713 887 88

keith pattison 01428 652554 07771 547406

dax pearce dax.pearce@benfield motorgroup.com alfa stock wanted up to 40,000 miles. n call for immediate bid. 07501 257220 or 0191 211 2200

dominic mcconnon 07776 246905 dominic.mcconnon@ vinesguildford.bmw-net.co.uk n buying used bmWs up to five years old

mangoletsi (holdings) limited fraser info@mangoletsi.com 01565 722899

simon elkin 01798 877211 07803 088711

Woodford Motor co ltd

Monza – Ferrari

nick carey nick.carey@hrowen.co.uk 07824 362229

andrew ludlow ferraribuyer@ntlworld.com 07889 305 053

Ferrari

Fiat

Fiat

Maranello Ferrari

glyn hopkin ltd

sturgess Fiat

John dutton 07817 019 456

glyn hopkin 07730 711889

ian callis 0116 254 1717 icallis@sturgess cars.co.uk n buying used fiats up to five years olds

Who is James Litton?

James runs theinternetcarlot.co.uk. he‘s been in the business for 12 years and always has something to say about the industry he loves.

To have your details included here log on to CarDealerMagazine.co.uk/trader-directory.htm

78 | carDealerMag.co.uk

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rectory

Finding the right cars at the right prices isn’t always that easy. On top of that, selling cars that you don’t necessarily want to put on the forecourt can be tough too. Our Trader Directory aims to alleviate these problems.

Instead of thumbing through endless pages in

price guides looking for the right trader, you can consult the Trader Directory, either in the magazine or online, and find them right away.

If you’d like to be included you can submit your details in the Directory find out how at the bottom of this page.

Ford

Ford

Ford

Honda

Honda

Benfield

Benfield Alfa Romeo

Lifestyle Ford

Honda

Thames Honda Group

Honda

Hyundai

Hyundai

Jaguar

Jaguar

Holdcroft Honda

Bushey Heath Hyundai

Hatfield Hyundai

Sturgess Jaguar

Charles Hurst Jaguar

Jeep

Kia

Kia

Lexus

Land Rover

John Holland Sales

Tower Hill Garage

Chapelhouse Kia

Lexus Twickenham

Sturgess Land Rover

Land Rover

mini test: Volvo V60

Lotus

Maserati

Beadles Land Rover

Car dealer says HHHHH

Murray Motor Company

Meridien Modena

Des Sammon des.sammon@benfield-ford. co.uk 07831 828024

Luke Regan / Chris Thursfield 07971 543884 07813 737 921

John Holland / Mark Holland 07836 690818 07831 824644

Greg Wilcox g.wilcox@beadles-landrover. co.uk 07740 717209

Dax Pearce dax.pearce@Benfield motorgroup.com Alfa stock wanted up to 40,000 miles. n Call for immediate bid. 07501 257220 or 0191 211 2200

Jon O’Donoghue 0208 420 5100 07976 177 959

Lee Gilmour 01923 263700 07768 367085

Richard Walker 07748 177889

Mark Littler/Tim Barnes 0161 767 9500 07920 599 394 07787 921 222

Andy / Neil 01925 570800 07891 531129 07825 311 297

The Volvo V60 is good enough to compete with its German rivals. Stylish, classy and spacious.

Brayley Honda Mark Corr 07812 342 635

Chris Allen chrisallen@sturgess jaguar.co.uk 0116 282 6868 n Buying Used Jaguars up to five years old

Dave Cooper / Steve Gurr 07831 704134 07921 408983

Graeme Robertson 0131 200 8888 07765 252745

Jerome Chandiram 0208 845 3551

Stewart Begg 0208 938 1300 07534 927 821

Chris Allen chrisallen@sturgess jaguar.co.uk 0116 282 6969 n Buying used Land Rovers up to five years old

Warren Butt 02380 283404 07860 530703

Price: £32,940, tested Issue 34

Maserati

Mazda

Mini

Mitsubishi

Nissan

HR Owen

Lifestyle Mazda

Vines Group

North City Autos (Chingford)

Nissan

Ed Tyrrell 020 8524 8855 07736 610285 n Interested in low mileage FSH vehicles

Sturgess Nissan Ian Callis 0116 254 1717 icallis@sturgess cars.co.uk n Buying used Nissans up to five years olds

General

Nick Carey nick.carey@hrowen.co.uk 07824 362229

Mark Spowage 01293 845045 07974 770020

Dominic McConnon Buying used MINIs up to 5 years old 07776 246905 dominic.mcconnon @vinesguildford.bmw-net.co.uk

Toyota

Volvo

General

General

Currie Motors Toyota

Sturgess Volvo

Sol Cars

Barry Freedman

Dave Cooper / Steve Gurr 07831 704134 07921 408983

Scott Allen 0116 275 8800 scottallen@ sturgesscars.co.uk n Buying used Volvos up to five years old

There’s also a more comprehensive list of traders on the website, updated throughout the month

Tim Hancock 07973722243 timfoxhancock@btopen world.com n Wanting part exchanges of all types up to 4k

01753 543105 07836 338694 barry.freedman@virgin.net n Trade buyer of PX vehicles anything up to £8k

Prices for six month listings: £29.99 On Website Or £39.99 for Magazine & Website.

Payments can be made online via credit or debit card. Or send your cheque made payable to Blackball Media Ltd to Car Dealer, 2a Church Road, Gosport, Hants PO12 2LB. Your details will appear in the next issue.

CarDealerIss37.indd 79

Philip Wight Motor Co

Philip Wight 01923 220000 phil@click4cars.co.uk Sensible buyer of hatch and estates up to £4k please.

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We take pride in our reputation…

John Gibson Associates have been established for over 23 years and have a reputation that’s envied throughout the industry for providing a recruitment service not only that we’re proud of, but that others strive to achieve.

We’re perfectly placed…

Our network of Regional Offices is run by Industry Professionals who have intimate local market knowledge and local industry contacts. They provide a personal service – keeping you up to date throughout the entire recruitment process.

We believe in building relations…

Taking the time and effort to get to know our Candidates and Clients is second nature to us. One of our main values is to find the right job for the right people and to also find the right people to contribute to the success of your business.

Your success is our business $BS%FBMFS 1PXFS

Winner 2010 Recruitment

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CarDealerIss37.indd 80

Tel: 0845 644 3003 THE LOCAL, REGIONAL, NATIONAL AUTOMOTIVE RECRUITERS

Web: www.jgauk.com Email: info@jgauk.com

4/3/11 16:29:30

CarDealer.Club

Are your key pieces in place?

free legal advice worth £199 discounts from key suppliers and a subscription to Car dealer

fOr Just £25 a Year sign up online at

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More vacancies at www.steele-dixon.co.uk or by telephoning 01235 536440 CarDealerIss37.indd 81

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99164 D

data file.

Seeking feedback from the client will drive sales up

A

s we continue to go through extraordinary times, which affect customers’ circumstances, buying decisions, opinions, and financial abilities, it’s imperative we step back, take stock, challenge the norm, and take action on what we discover.

For instance, has the type of customer walking on to your site changed in the past year and how? Are they looking for different cars and why? Are they asking different questions and for what reason? What’s now influencing their buying decision and (for example) how can you re-train your staff to sell strongly to these influences today.

About two years ago (yes, doesn’t time fly) I mentioned that an easy way of gathering information about what’s changed is to simply ask your customers if they’d be willing to complete a short questionnaire as they wander around your site. This has a two-fold benefit, firstly you’ll immediately find out what the customer’s current buying motives are and what’s important to them (but bear in mind this is a survey, if it’s too much of a personal fact find you might turn the customer off), but you can immediately build rapport and sell to this knowledge. Secondly, as you collect questionnaires and assess the information they contain, you will build up a new picture of your customers’ changed buying influences, needs, circumstances and financial abilities, which if you do this exercise once a year will show you a changing pattern.

If you develop and improve the questionnaire over time, you will end up gathering astonishingly good and valuable information like what prompted potential customers to come on to your site and what might have put them off (as asking seemingly negative questions often

Don

Brough suB-prime time

can provide more insight than asking positive ones), what’s becoming more or less important in their buying decisions, and how their financial needs and preferences have changed.

You can use this information in many ways from revising your site layout, stock preferences, advertising focus, sales training and process design, finance provider relationships and so on.

For example, if you’re finding that today your customers are becoming increasingly interested in a car’s running costs, you’ll need to ensure your sales staff can talk positively and knowledgeably about consumption figures, insurance groups, average servicing costs, residual values,

‘You’ll build up a new picture of your customers’ changed buying influences.’ and other cost-related information for every car on your site.

I think constructing and using a customer questionnaire is a simple and useful technique that can support the immediate sales process of any business and also build up valuable sales and marketing information which can then be used to take positive action over time in line with the developing demands and needs of your customer base and market.

If you tried this technique two years ago there’s also the option of phoning customers you surveyed to ask how their views have changed and use this opportunity to get them back onto your site and into a new car.

Who is Don Brough? don is chief executive officer of first response finance. for more information visit frfl.co.uk or call 0115 946 6370

Coming next month

if there’s something you think we should be covering get in touch. our details are on page three

Feature

inside story on Great Wall

manual lexus’ vital Ct 200h tested

O a

insiGht Finance firms that can help boost your business

F d f W c

I c

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99164 DSSP First Response magad 28/02/2011 12:07 Page 1

Our people think we’re a ‘best company’ and we know you will too!

First Response Finance has been working with our people on their development, and providing them with great working environments so they can focus on providing the ʻbestʼ possible service in our market.

We are proud to have achieved a 2 Star accreditation out of a possible 3, and be classed as an ʻOutstandingʼ company In the Sunday Times Top 100 list.

If you want a ʻbest companiesʼ service in offering non prime motor finance, call us today on 0115 946 6317

CarDealerIss37.indd 83

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e bl la I ai HP av y gh nl u O hro t

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hpi driveaway The free 7 day insurance

Driveaway cover from Aviva is underwritten by Aviva Insurance UK Limited. Registered Office: 8 Surrey Street, Norwich NR1 3NG. Registered in England No. 99122. Authorised and regulated by the Financial Services Authority. For the purpose of the Data Protection Act 1998, the data controller in relation to any personal data you supply is Aviva Insurance UK Limited. For our joint protection calls may be recorded and/or monitored.

Cover not available in N. Ireland. Age restrictions apply. Aviva may decline to quote for the annual policy in some circumstances, meaning that the 7 days’ complimentary cover cannot be given. Only one 7 day free policy is permitted per customer per vehicle registration number. Calls will be charged at local rate and may be recorded and/or monitored. HPI and the HPI logo are registered trademarks of HPI Limited. HPI is a Solera company. * Dependent on volumes.

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